Transcripts For CNBC Closing Bell 20240712 : comparemela.com

Delays from washington from the trade deal to the stimulus negotiations, deadlines and expectations being pushed back the weve got 59 minutes left to go in the trading week s p 500, 16 points from a record close. Down right now, jon. Still higher on the week everyone except the nasdaq great to be with you this afternoon. We have a big show coming up to finish out the week. Were going to speak with minneapolis fed fred neel sakashkari and later, as stimulus talks grind to a halt, well speak with Maxine Waters about whether there is any compromise to be had. Plus, shell discuss a new bill encouraging the fed to use authority to close the racial wage gap in this country mike santoli is tracking the Market Action. Start us off on the broader market. You can call it resilient or fatigue or really anything a standoff here at the record high levels of the s p 500. The past four days have basic clind of touched it or been shouting distance of it. The were just hovering there. Up 3 or so month to date. That is not bad. Supposedly bad month of august i like to show a one year chart right now. The total return of the s p 500 on a 12month basis is over 20 right now. Maybe people feel like this market is priced a good deal in. Again, nothing has disturbed this idea that were in this this uptrend even in fact the all time high levels is a pretty decent spot, i think, for bulls to wait and see if it has enough energy to break out above it and for bears to say lets make a stand right here the market is a little ahead of itself maybe it will take a patented monday morning pop higher to make a real effort at the high if we dont get it in the next hour or. So sarah mentioned this rotation going on i think its incorrect to call it a rotation into value from growth much its much p more about rotation into cyclical sectors from defensive growth sectors. So this is the s p 500 value index. That is basically done this month exactly what the s p 500 has done slightly outperforming industrials up 1. 8 . Rcd is the equally waited discretionary. Also up 8 so therefore bullish on the domestic spending. Things like Home Builders and things like. That you have a Home Builders pure play. Building on an already strong year it shows you the market is trying to get traction behind this idea. Even if we have this big air pocket in terms of consumer budgets. Im wondering, mike, i look at that s p 500 chart year to date and were right about where we were when things went off the cliff in february. But what has changed certainly everything is not the same as far as the s p 500 goes. Just a number is about the same. Thats right. The composition of the s p 500 is vastly different today than it was back then youve had greater concentration in those huge faang type stocks. I think that if you look at the overall index, more than a third of it still is down more than 20 from a high. So its really been kind of rotation from the many into the few. And now the question is can it broaden back out if in fact we get a little clarity and what the economy is up to and if profits can rebound as much as the forecast now says. Yeah, banks still 20 from the highs. Energy 40 from the highs. Utilities 14 . Mike, thank you. Well see you in just a bit. The senate is officially adjourned until after labor day. The but President Trump still making some stimulus headlines this afternoon we have them for us. Yeah, a little news that White House Press briefing this afternoon. The president said the federal government is going to activate a clause in an existing contract to distribute vaccine ands vaccine related supplies that had impact in the shares this afternoon people reacted to that news. Its an existing contract that the federal government has with them but this will activate a clause that will allow them to distribute the Vaccine Supplies if and when we get a vaccine for the federal government to distribute meanwhile, the president as you say on the stimulus negotiations continue to really dump on the democrats blaming them for Holding Everything up. Heres what he said. Ive directed the secretary of the treasury to get ready and send direct payments, 3,400, for a familiar live foy of four to l americans. Democrats are holding this up. I am ready to have the u. S. And sba send additional ppp payments to Small Businesses that have been hurt by the china virus democrats are holding this up. So the president there saying hes ready to do those things. The no indication that, of course, he has the authority to do those without congress. The president signalling here he wants some movement in the negotiations which have completely stalled out f you ask the democrats, theyre pointing the finger at the republicans as well so there is a lot of finger pointing going on in washington. Not a lot of negotiating going on in washington and speaking of not a lot of negotiating, reuters is reporting that those trade negotiations that were scheduled for saturday, tomorrow here in washington between the United States and china, those are on hold the reuters reports. No official confirmation of that from the white house just yet. But that indicates that that phase one talk that was set to happen may not happen as planned. Still though, there is no expectation anything is going haywire with the phase one talks. Both side have an incentive ahead of the u. S. Election to keep that deal on track. Back to you. So heres what i dont get. What is the white houses position on stimulus im not sure i understand why theyre at odds with the democrats that want to spend more President Trump is not face call conservative he added plenty to the debt. Understands that more stimulus equals more economic growth. Weve seen that over the last few months why arent they trying to make a deal with the election approaching. Democrats said they want a trillion dollars for states and local governments. What the president tweeted and said goen day, hes ready to send money to states and local governments. Maybe he is signalling here some ability to concede on. That the problem for the sprez there are a lot of republicans on capitol hill in his own party that dont agree with that but feel there is already been too much spending. That a trillion dollars or more is far too much. The secretary said a trillion dollars is a ridiculous number earlier on in this negotiation all right well see where this one goes, of course. You bet after the break, minneapolis fed president Neel Kashkari is wanting to do a shut down to battle the coronavirus youre watching closing bell on cnbc. Industrials and energy best performers on the week a four to six week lockdown. What the president says needs to do to combat the coronavirus he lined out his thoughts. He said here is how to crush the virus until vaccine as rife. He joins us now in a first on cnbc interview. President kashkari, great to have you here. Thank you for having me good to be with you. So my biggest question around your plan is havent we already tried that i mean we did that a few months ago. It devastated the economy. Worked a little bit for the virus. But then didnt crush it numbers kept rising again y would we want to do that again well, youre right. We did a partial approach of this in the spring but we gave up far too soon. And it was not nearly strict enough you know, we looked at research that says around 38 or 39 of workers in america are in essential industries but shutdowns were very varied in minnesota, 78 of workers were deemed essential. It was a very partial shutdown then we gave up far too soon as a result, the virus is now raging almost out of control across the country with 50,000 cases a day. We have this very muted uneven economic recovery. Their economies are recovering much more quickly now. So we basically, we blew it the first time and the doctor and i are arguing we should do it right this time. Not sure. Do we really have that Second Chance where we can do that to our economy . Were already seeing miles long food lines at some food banks across the country Small Businesses are shutting down thousands, i he mean, you know you speak to the people. Wouldnt that cause permanent damage to do that again . We can have a rocky muted recovery for the next couple years until i hope a vaccine, a miraculous vaccine will bail us out of this or we can try to take more aggressive temporary measures now so we can have a morrow bust recovery right now the School Districts are welcoming the students back in Person Learning again. And we would have to monitor, you know, should down the. You dont completely put out the virus. The you drive down the enough so that Public Health officials can contact trace, test, and manage any potential flareups. We have given up that right now because the virus is raging out of control i wish there was an easy answer. We have a bufrnch of tough chois to make. We have a lot of economic pain out there in the meantime we dont have a stimulus deal from washington. No negotiations even happening whats the impact . Its profound. The best thing that has happened in this terrible crisis has been the way that both parties have come together in congress to provide a hot of assistance to the American People who have been laid off and business whos have been directly aeffected. They need continuing support until we get through this. If we dont arrest the virus and this is going to be burning for the next year or two, people need support for the next year or two if we were to do aggressive intervention now, the bridge that they would need would be much shorter and more affordable than having to provide assistance but it is very important that Congress Continues to provide support especially to those workers who continue to be unemployed speaking of congress, some House Democrats are proposing expanding the feds mandate to close racial gaps in jobs, wealth and income. I wonder, can you see a way that is practically workable for the fed and do you envision any unintended consequences if the mandate were to expand in that way . Well, we have the duel mandate, i know you talk about which is stable prices and maximum employment and we can think of those things as like a seesaw that sometimes were trading them off each other. I think we have to look very carefully at if you did try to use monday taketary policy to c gaps of different races what would happen on the inflation side of the equation one mistake that ive been vocal about for the last five years is we raise rates prematurely before we had really achieved maximum or full employment and that put a damper on the labor market well, i think were learning from that experience and we want the labor market to strengthen as much of as possible and that when the labor market strengthens, it brings everybody in it really helps everybody to succeed. And so im comfortable we have the tools within our duel mandate. Im cautious about what it would mean for inflation if we change that and just focus on one group or on gaps directly. Is there a way to study that then, do you think, and provide feedback on that before the request or command comes down one way or the other absolutely. We have a Research Center Whose Mission is to study the different gaps what are the causes of the gaps and what are the policy levers that could close the gaps . Poeblly Monetary Policy but certainly fiscal policy probably has a much bigger role to play we should be studying them we should all the resource swrez to bear. We need to be aware of potential tradeoffs. Lets talk fed policy for a moment the fed is really all in here. Zero rates pumping trillions of dollars in terms of liquidity. What more do you think the fred should and can be doing if the outlook deteriorates all of colleagues said this the path of the virus is going to determine the path of the economy. The most important thing anybody can do is get the arms around the virus so we have confidence to go to Football Games and to go back into classrooms, et cetera there is not a lot for the fed to do now. Were providing a lot of liquidity and making sure that market are functioning and that companies can, you know, reach the Financial Markets to fund the operations once we get the virus under control and its really time to put everybody back to work and to restart the economy as aggressively as possible, there may be more that the fed can do. In the interim, there is talk about our Forward Guidance and providing stronger commitments that keep rates low. I think right now the fed is in a good place why is the fed buying bonds apple and amazon it is high quality bonds youre saying who is a Favorite Company and not a Favorite Company. We want to make sure that Financial Markets and Corporate Bond market is functioning so that Healthy Companies can raise the money they need. Ill give you an example in march when the crisis was in full swing and people were fleeing and they just wanted cash, you were seeing bond markets starting to dry up and what we didnt want to have happen, we into you that Airline Companies and Hotel Companies were directly aekt iffffected be coronavirus. We didnt want to have companies that were sound not be able to raise money just because markets were freezing up so the fed introduced numerous different liquidity facilities to get these markets functioning again. And we would much rather provide broad base support thats why were buying against the indices. We were just talking about racial wage gaps we could have been talking about stimulus also. It seems to me that Congress Keeps asking the fed to do things that congress and fiscal policy traditionally have gotten done do you see any dangers there down the line . I think were keeping our eyes open and want to keep the fed nonpartisan and nonpolitical and focus on the mission thats congress has given us. Keep in mind, the Federal Reserve is created by congress they gave us the duel mandate. And we have to be responsive to them i hope that they recognize and we will certainly continue to advocate that there say place for Monetary Policy and problems that Monetary Policy can address. But there are other problems as you say that are better addressed by fiscal policy i think well be vocal about where we see the relative tools playing. Im much more focused there is a bounce back from a very low q2 im much more focused on the labor market that to me is a much bigger indicator of where the economy really is and how the American People are really faring the real the headline on Unemployment Rates around 10 . I think the real or effective Unemployment Rate is close to 14 today. Those are astonishingly high numbers. Yes, theyre lower than they were a month ago but theyre still astonishing high numbers, much greater than the recession. You have distant learning and many restaurants running at partial capacities or shut down, the job Market Recovery is slower of youll see many more businesses go bankrupt because they can endure. Think about a restaurant that is running at 25 capacity. How long can they do that . Can they do that for the next year or two you paint a picture of sluggish growth and a lot of challenges why is the market at record high and managed to bounce more than 50 from the march lows . Does that make sense well, i think its a couple things one is i think because the Federal Reserve was so much more aggressive than it was in 2008 that provides a lot of support to markets and youre seeing a lot of liquidity in the system that does find some of it in the way into asset prices and stock prices and bond prices i think that is partly reflecting that. And i also think markets are saying, well, congress has come together very aggressively to support the American People. I think markets are betting that congress will do so again even though theres been a delay this time but at the end of the day, im going to keep coming back to something that all of my colleagues have said we have to get control of the virus. If we really want the economy to fully recover. Im not sure there is a way to do it even though you point to other countries, look at what is happening. New zealand is seeing a flareup parts of europe are seeing a flareup until we have a vaccine, feels like its going to be with us, shut down or not well, no. But there say big difference a flareup of a few hundred cases in some of the countries or 1,000 cases is totally different than a flareup of 50,000 cases a day weve thrown in the towel. Other countries, yeah. If we had 1,000 cases a day, our Health Care System would be able to identify those people we would have plenty of Testing Capacity its no the that you have to get it to zero you have to get i low enough so that the Health Care Capacity can monitor it and control it. Mesh exceptionalism, are we the only country that is the only advanced nation that is incapable of doing this . Find that hard to believe. Yeah. Its an interesting idea thanks for coming on to talk about it thank you for having me appreciate the time president of the minneapolis Federal Reserve. Still ahead, another big interview coming your way. Were going to talk to Maxine Waters<\/a> about whether there is any compromise to be had. Plus, shell discuss a new bill encouraging the fed to use authority to close the racial wage gap in this country mike santoli is tracking the Market Action<\/a>. Start us off on the broader market. You can call it resilient or fatigue or really anything a standoff here at the record high levels of the s p 500. The past four days have basic clind of touched it or been shouting distance of it. The were just hovering there. Up 3 or so month to date. That is not bad. Supposedly bad month of august i like to show a one year chart right now. The total return of the s p 500 on a 12month basis is over 20 right now. Maybe people feel like this market is priced a good deal in. Again, nothing has disturbed this idea that were in this this uptrend even in fact the all time high levels is a pretty decent spot, i think, for bulls to wait and see if it has enough energy to break out above it and for bears to say lets make a stand right here the market is a little ahead of itself maybe it will take a patented monday morning pop higher to make a real effort at the high if we dont get it in the next hour or. So sarah mentioned this rotation going on i think its incorrect to call it a rotation into value from growth much its much p more about rotation into cyclical sectors from defensive growth sectors. So this is the s p 500 value index. That is basically done this month exactly what the s p 500 has done slightly outperforming industrials up 1. 8 . Rcd is the equally waited discretionary. Also up 8 so therefore bullish on the domestic spending. Things like Home Builders<\/a> and things like. That you have a Home Builders<\/a> pure play. Building on an already strong year it shows you the market is trying to get traction behind this idea. Even if we have this big air pocket in terms of consumer budgets. Im wondering, mike, i look at that s p 500 chart year to date and were right about where we were when things went off the cliff in february. But what has changed certainly everything is not the same as far as the s p 500 goes. Just a number is about the same. Thats right. The composition of the s p 500 is vastly different today than it was back then youve had greater concentration in those huge faang type stocks. I think that if you look at the overall index, more than a third of it still is down more than 20 from a high. So its really been kind of rotation from the many into the few. And now the question is can it broaden back out if in fact we get a little clarity and what the economy is up to and if profits can rebound as much as the forecast now says. Yeah, banks still 20 from the highs. Energy 40 from the highs. Utilities 14 . Mike, thank you. Well see you in just a bit. The senate is officially adjourned until after labor day. The but President Trump<\/a> still making some stimulus headlines this afternoon we have them for us. Yeah, a little news that White House Press<\/a> briefing this afternoon. The president said the federal government is going to activate a clause in an existing contract to distribute vaccine ands vaccine related supplies that had impact in the shares this afternoon people reacted to that news. Its an existing contract that the federal government has with them but this will activate a clause that will allow them to distribute the Vaccine Supplies<\/a> if and when we get a vaccine for the federal government to distribute meanwhile, the president as you say on the stimulus negotiations continue to really dump on the democrats blaming them for Holding Everything<\/a> up. Heres what he said. Ive directed the secretary of the treasury to get ready and send direct payments, 3,400, for a familiar live foy of four to l americans. Democrats are holding this up. I am ready to have the u. S. And sba send additional ppp payments to Small Businesses<\/a> that have been hurt by the china virus democrats are holding this up. So the president there saying hes ready to do those things. The no indication that, of course, he has the authority to do those without congress. The president signalling here he wants some movement in the negotiations which have completely stalled out f you ask the democrats, theyre pointing the finger at the republicans as well so there is a lot of finger pointing going on in washington. Not a lot of negotiating going on in washington and speaking of not a lot of negotiating, reuters is reporting that those trade negotiations that were scheduled for saturday, tomorrow here in washington between the United States<\/a> and china, those are on hold the reuters reports. No official confirmation of that from the white house just yet. But that indicates that that phase one talk that was set to happen may not happen as planned. Still though, there is no expectation anything is going haywire with the phase one talks. Both side have an incentive ahead of the u. S. Election to keep that deal on track. Back to you. So heres what i dont get. What is the white houses position on stimulus im not sure i understand why theyre at odds with the democrats that want to spend more President Trump<\/a> is not face call conservative he added plenty to the debt. Understands that more stimulus equals more economic growth. Weve seen that over the last few months why arent they trying to make a deal with the election approaching. Democrats said they want a trillion dollars for states and local governments. What the president tweeted and said goen day, hes ready to send money to states and local governments. Maybe he is signalling here some ability to concede on. That the problem for the sprez there are a lot of republicans on capitol hill in his own party that dont agree with that but feel there is already been too much spending. That a trillion dollars or more is far too much. The secretary said a trillion dollars is a ridiculous number earlier on in this negotiation all right well see where this one goes, of course. You bet after the break, minneapolis fed president Neel Kashkari<\/a> is wanting to do a shut down to battle the coronavirus youre watching closing bell on cnbc. Industrials and energy best performers on the week a four to six week lockdown. What the president says needs to do to combat the coronavirus he lined out his thoughts. He said here is how to crush the virus until vaccine as rife. He joins us now in a first on cnbc interview. President kashkari, great to have you here. Thank you for having me good to be with you. So my biggest question around your plan is havent we already tried that i mean we did that a few months ago. It devastated the economy. Worked a little bit for the virus. But then didnt crush it numbers kept rising again y would we want to do that again well, youre right. We did a partial approach of this in the spring but we gave up far too soon. And it was not nearly strict enough you know, we looked at research that says around 38 or 39 of workers in america are in essential industries but shutdowns were very varied in minnesota, 78 of workers were deemed essential. It was a very partial shutdown then we gave up far too soon as a result, the virus is now raging almost out of control across the country with 50,000 cases a day. We have this very muted uneven economic recovery. Their economies are recovering much more quickly now. So we basically, we blew it the first time and the doctor and i are arguing we should do it right this time. Not sure. Do we really have that Second Chance<\/a> where we can do that to our economy . Were already seeing miles long food lines at some food banks across the country Small Businesses<\/a> are shutting down thousands, i he mean, you know you speak to the people. Wouldnt that cause permanent damage to do that again . We can have a rocky muted recovery for the next couple years until i hope a vaccine, a miraculous vaccine will bail us out of this or we can try to take more aggressive temporary measures now so we can have a morrow bust recovery right now the School Districts<\/a> are welcoming the students back in Person Learning<\/a> again. And we would have to monitor, you know, should down the. You dont completely put out the virus. The you drive down the enough so that Public Health<\/a> officials can contact trace, test, and manage any potential flareups. We have given up that right now because the virus is raging out of control i wish there was an easy answer. We have a bufrnch of tough chois to make. We have a lot of economic pain out there in the meantime we dont have a stimulus deal from washington. No negotiations even happening whats the impact . Its profound. The best thing that has happened in this terrible crisis has been the way that both parties have come together in congress to provide a hot of assistance to the American People<\/a> who have been laid off and business whos have been directly aeffected. They need continuing support until we get through this. If we dont arrest the virus and this is going to be burning for the next year or two, people need support for the next year or two if we were to do aggressive intervention now, the bridge that they would need would be much shorter and more affordable than having to provide assistance but it is very important that Congress Continues<\/a> to provide support especially to those workers who continue to be unemployed speaking of congress, some House Democrats<\/a> are proposing expanding the feds mandate to close racial gaps in jobs, wealth and income. I wonder, can you see a way that is practically workable for the fed and do you envision any unintended consequences if the mandate were to expand in that way . Well, we have the duel mandate, i know you talk about which is stable prices and maximum employment and we can think of those things as like a seesaw that sometimes were trading them off each other. I think we have to look very carefully at if you did try to use monday taketary policy to c gaps of different races what would happen on the inflation side of the equation one mistake that ive been vocal about for the last five years is we raise rates prematurely before we had really achieved maximum or full employment and that put a damper on the labor market well, i think were learning from that experience and we want the labor market to strengthen as much of as possible and that when the labor market strengthens, it brings everybody in it really helps everybody to succeed. And so im comfortable we have the tools within our duel mandate. Im cautious about what it would mean for inflation if we change that and just focus on one group or on gaps directly. Is there a way to study that then, do you think, and provide feedback on that before the request or command comes down one way or the other absolutely. We have a Research Center<\/a> Whose Mission<\/a> is to study the different gaps what are the causes of the gaps and what are the policy levers that could close the gaps . Poeblly Monetary Policy<\/a> but certainly fiscal policy probably has a much bigger role to play we should be studying them we should all the resource swrez to bear. We need to be aware of potential tradeoffs. Lets talk fed policy for a moment the fed is really all in here. Zero rates pumping trillions of dollars in terms of liquidity. What more do you think the fred should and can be doing if the outlook deteriorates all of colleagues said this the path of the virus is going to determine the path of the economy. The most important thing anybody can do is get the arms around the virus so we have confidence to go to Football Games<\/a> and to go back into classrooms, et cetera there is not a lot for the fed to do now. Were providing a lot of liquidity and making sure that market are functioning and that companies can, you know, reach the Financial Markets<\/a> to fund the operations once we get the virus under control and its really time to put everybody back to work and to restart the economy as aggressively as possible, there may be more that the fed can do. In the interim, there is talk about our Forward Guidance<\/a> and providing stronger commitments that keep rates low. I think right now the fed is in a good place why is the fed buying bonds apple and amazon it is high quality bonds youre saying who is a Favorite Company<\/a> and not a Favorite Company<\/a>. We want to make sure that Financial Markets<\/a> and Corporate Bond<\/a> market is functioning so that Healthy Companies<\/a> can raise the money they need. Ill give you an example in march when the crisis was in full swing and people were fleeing and they just wanted cash, you were seeing bond markets starting to dry up and what we didnt want to have happen, we into you that Airline Companies<\/a> and Hotel Companies<\/a> were directly aekt iffffected be coronavirus. We didnt want to have companies that were sound not be able to raise money just because markets were freezing up so the fed introduced numerous different liquidity facilities to get these markets functioning again. And we would much rather provide broad base support thats why were buying against the indices. We were just talking about racial wage gaps we could have been talking about stimulus also. It seems to me that Congress Keeps<\/a> asking the fed to do things that congress and fiscal policy traditionally have gotten done do you see any dangers there down the line . I think were keeping our eyes open and want to keep the fed nonpartisan and nonpolitical and focus on the mission thats congress has given us. Keep in mind, the Federal Reserve<\/a> is created by congress they gave us the duel mandate. And we have to be responsive to them i hope that they recognize and we will certainly continue to advocate that there say place for Monetary Policy<\/a> and problems that Monetary Policy<\/a> can address. But there are other problems as you say that are better addressed by fiscal policy i think well be vocal about where we see the relative tools playing. Im much more focused there is a bounce back from a very low q2 im much more focused on the labor market that to me is a much bigger indicator of where the economy really is and how the American People<\/a> are really faring the real the headline on Unemployment Rate<\/a>s around 10 . I think the real or effective Unemployment Rate<\/a> is close to 14 today. Those are astonishingly high numbers. Yes, theyre lower than they were a month ago but theyre still astonishing high numbers, much greater than the recession. You have distant learning and many restaurants running at partial capacities or shut down, the job Market Recovery<\/a> is slower of youll see many more businesses go bankrupt because they can endure. Think about a restaurant that is running at 25 capacity. How long can they do that . Can they do that for the next year or two you paint a picture of sluggish growth and a lot of challenges why is the market at record high and managed to bounce more than 50 from the march lows . Does that make sense well, i think its a couple things one is i think because the Federal Reserve<\/a> was so much more aggressive than it was in 2008 that provides a lot of support to markets and youre seeing a lot of liquidity in the system that does find some of it in the way into asset prices and stock prices and bond prices i think that is partly reflecting that. And i also think markets are saying, well, congress has come together very aggressively to support the American People<\/a>. I think markets are betting that congress will do so again even though theres been a delay this time but at the end of the day, im going to keep coming back to something that all of my colleagues have said we have to get control of the virus. If we really want the economy to fully recover. Im not sure there is a way to do it even though you point to other countries, look at what is happening. New zealand is seeing a flareup parts of europe are seeing a flareup until we have a vaccine, feels like its going to be with us, shut down or not well, no. But there say big difference a flareup of a few hundred cases in some of the countries or 1,000 cases is totally different than a flareup of 50,000 cases a day weve thrown in the towel. Other countries, yeah. If we had 1,000 cases a day, our Health Care System<\/a> would be able to identify those people we would have plenty of Testing Capacity<\/a> its no the that you have to get it to zero you have to get i low enough so that the Health Care Capacity<\/a> can monitor it and control it. Mesh exceptionalism, are we the only country that is the only advanced nation that is incapable of doing this . Find that hard to believe. Yeah. Its an interesting idea thanks for coming on to talk about it thank you for having me appreciate the time president of the minneapolis Federal Reserve<\/a>. Still ahead, another big interview coming your way. Were going to talk to Maxine Waters<\/a> about the stimulus impact in washington and her push for at jon is talking about, the Federal Reserve<\/a>. Knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Gimme one minute. And ill tell you some important things to know about medicare. First, it doesnt pay for everything. Say this pizza is your part b medical expenses. This much about 80 medicare will pay for. Whats left is on you. Thats where an aarp Medicare Supplement<\/a> insurance plan, insured by Unitedhealthcare Insurance Company<\/a> comes in. This type of plan helps pay some of what medicare doesnt. These are the only plans to carry the aarp endorsement for meeting their high standards of quality and service. So call Unitedhealthcare Insurance Company<\/a> today and ask for your free decision guide. With this type of plan, youll have the freedom to choose any doctor who accepts medicare patients. And when you travel, your plan will go with you anywhere in the country. Whew call unitedhealthcare today and ask for your free decision guide. It is time for the update with Frank Holland<\/a>. Good afternoon, jon here is the update this hour the u. S. Postal service is concerned they may not be able to deliver all mail in ballots in time to be counted. 46 states and district of colombia received detailed warnings in new jersey, phil murphy is worried the Postal Service<\/a> is getting turned into a political football he zis missed concerns about voter fraud. The governor announced voting in this state will be done mostly by mail. All active registered voters will be sent a ballot which be mailed in or dropped off at county offices or polling places and michigan governor announcing four million free face coverings will be going to low income residents, seniors, schools and homeless shelters. Fema is supplying 2. 5 million of them ford motor is donating the rest. That is our up in date for this hour back to you, jon all right frank, thank you still ahead, tesla turning in another huge week up more than 12 on the back of its stock split announcement weechlt speak with an analyst who just upgraded the name. Plus, congresswoman Maxine Waters<\/a> joins us to weigh in on the stimulus stalemate in washington and as we head to break, heres a check on bonds i am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Democrats calling on the fed to help address economic racial inequality a new bill called the Federal Reserve<\/a> equity act the legislation would make reducing inequality a part of the feds mission. It would also require the fed chair to highlight existing disparities and employment and income as well as present plans on how the fed would use the powers to close those gaps representative Maxine Waters<\/a> helped spear head the bill she is chair of the House Financial Services<\/a> committee and she joins us now for more. Madam chairwoman, thank you for being with us. Youre so welcome im delighted to be with you today. Thank you for dealing with this subject. Very much want to get into that but before i ask you about the fed, i have to ask about the stimulus negotiations. Do you have a clear sense of where republicans stand right now as things appear to be stalled . Im not sure that Congressional Republicans<\/a> and the white house are yet speaking with the united voice. There are no negotiations going on at this time. Unfortunately, the republicans are not willing to spend any more than 1 trillion on the recovery, on this pandemic following up on the cares act that we had. And we came out of the house having supported the heroes act which would spend 3. 4 trillion. Nancy pelosi, the speaker of the house, along with mr. Schumer from the senate both decided that, okay, since youre resisting republicans, three trillion dollar bill will take 1 trillion off the table which youve been insisting on if you will support 1 trillion and we support 1 trillion, lets see what we can do with 2 trillion to deal with this unemployment and those people who are looking to the government to do something similar to help them that we did in the cares act the cities and states has to match it were trying to find the cities and the states that are running out of money and who may be, you know, laying off employees. They dont want to support, you know, at least how much we put in the cares act for unemployment they dont want to support the rental assistance. They they dont want to support the rental assistance. The president doesnt want to put up any money for that. It goes on and on and on so the negotiations are stalled and the president interfered with the negotiations. I want to ask, clearly this covid19 pandemic is its own issue. Many people have said we certainly have to spend to get through this but so mind boggling to me that were talking in trillions of dollars of spending and just questioning how many trillions sometime it feels like the democrats or republicans are both trying to take the American People<\/a> out to an all you can eat dinner but trying to stick different people with the bill republicans dont care how much we eat as long as corporations and the rich dont have to pay democrats do want the rich to pay more at some point, do we have to talk about how all of this, even this essential pandemic spending gets paid for . Yes we do have to talk about that n talking about that, we have to take responsibility for the people of this country who expect their government not to allow them to be evicted and put out on the streets they expect their government to take responsibility to see that they can feed their families they expect this government to help them with their Health Care Needs<\/a> and to deal with a real plan to ensure that we dont exacerbate this infection that were confronted with. Were going to have to pay for it and were going to have to do what we do in this country were going to have to strengthen the economy so that there are jobs for everybody jobs for people who have, you know, big background and a lot of education jobs of people who perhaps dont have training, dont have, you know, the kind of education. With he have to talk about job creation i think we have to stimulate this economy we have to pay taxes and take care of the people of this country and not just consider that the rich can take care of themselves, the 1 can do that they can have their yachts and multiple mansions, they can have everything that they want. But were not going to sit still and allow the least of these to be put out on the street with their children yet weesh have to pay for it. Congresswoman, i get a lot of your points. I feel like there is blame on both sides here. Why is there partisan bickering and not compromise happening with millions of americans unemployed, Small Businesses<\/a> shutting down, the pandemic spreading, states going broke. I mean, why is Congress Going<\/a> on vacation both sides surely can get together and compromise. Ive never been on vacation from congress. When i break on the weekends and i come home, i am out in the community. I am with my seniors im going to Senior Citizens<\/a> homes. I am going to churches and we dont have vacations as people would think about vacations. Were working. Dont forget were in an election time and all of that. But he let me just say this, it is not simply bickering. It is about what kind of decisions are being made base oed on the philosophy of the republicans and democrats. You know in the media know this president. You know him well. He has defined himself do you think he is capable of guiding his negotiators to do the right thing . Theyre held hostage by a president who has demonstrated his lack of knowledge about the constitution actually. His caring about the least of these. Only caring about himself and building a wall. I would not be able, no matter i or anybody else in a responsible way to negotiate with the president of the United States<\/a> who is not capable of a good negotiation. Hes all about i actually think it is very much its not bickering. I think its very much in his interest. I think its in his interest to provide stimulus benefits right now. Ahead of the elections i guess my follow up to you would be stlnt room isnt th the democratic side given we have seen there is a ton of work to be done 40 of the jobs lost during the pandemic come back and the economy doing a little butt better. And the market at a record high. I mean will is not as dire as it was a few months ago wall street is doing fine main street is not doing so well wall street is doing fine. Youre arguing investors, big time people who, you know, found the markets every day. And do what they have to do to manipulate investments, theyre doing fine let me tell you this when you talk about compromise, it is not that were not willing to compromise. Nancy pelosi went to the table and basically said okay. We passed the 3. 4 trillion bill out of the house im taking 1 trillion off the table because you said you wont support anything but 1 trillion, will you come to your table with your 1 trillion . Well come to the table with 1 trillion lets negotiate on 2 trillion they said no and then the president interfered and came in with his stupid executive orders talking about, you know, what was going to happen with extending a moratorium on renters that he didnt extend and threw it over to some of our agencies like hud and dhs and told them to go evaluate, take a look at that meanwhile, the moratorium on evictions is over landlords now have 30 days by which to evict people. You talk about children going back to school they f. They dont have a place to live, theyre not going back to school. So take a look at this seriously when you talk about bickering, what you do is you use the kind of language that would have people think that nobody cares that there is nobody that is willing to come to the negotiations and make concessions and compromise yes, the democrats are doing that we hear you we hear you. Theyre offering the opportunity for the republicans to join us instead of only being focused on building a wall and giving the president everything that he needs to do that with. Congressmwoman, we want to ge to the fed and legislation that you and other democrats are proposing. Definitely do want to do that. We were just speaking earlier with minneapolis fed president about the idea of managing of the feds mandate expanding to, for example, include black laan latino unemployment. He was concerned about unintended consequences if that were to happen the current duel mandate combined with congresss powers and fiscal policy might be enough to address some of those issues are you concerned that perhaps if the feds mandate expands things could go in a way that is not intended no. Let me just say this particularly for my committee, we have learned how to work with the feds and chairman powell in ways that, you know, sometimes we have suggestions. Sometimes he can offer responses. That basically agree with some of what were talking about. Weve been able to do that as we respond to the pandemic and as he creates new facilities with the feds like the main street program. Et cetera, et cetera we get along very well we understand the mandate. We understand that there is the business of Monetary Policy<\/a>. But im inspired as Elizabeth Warren<\/a> is inspired about president rafael who is at the atlanta fed who recently acknowledged that in a very powerful essay that they can do more that they should be looking at not only, you know, their responsibility, theyre socalled duel mandate but expanding on the ways that they look at the duel mandate about unemployment its not enough to continue to say that black unmoiment is, you know, substantially less what are we going to do about that there is a lot in Public Policy<\/a> at all levels of government. That have caused systemic racism and created problems that does not allow everybody to participate equally. And so now were saying all right. Take a look at your mandate. And see what you find in there that has limited the ability of poor people, of people of color to be able to have better employment what is full employment if not everybody is fully employed . How do you do that what consideration can you give to the power that you have were asking them to do that and i really dont think thats unreasonable and i think that when we listen to and we paid attention to that powerful essay of bostick out of the atlanta fed, it did inspire us to ask those kinds of questions. And thats what were doing with this legislation its an interesting idea. I think were going to continue to have the conversation i know Vice President<\/a> biden also put out a proposal like that for now, congresswoman Maxine Waters<\/a>, were out of time. Thank you for joining us youre so welcome appreciate it. Lost the feed there. Still ahead, shares of Wyndham Hotels<\/a> and casinos are down on the year of well talk to the companys ceo about whether stercuoms are really starting to come back on vacation well be right back. Is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. After this break, well talk to an analyst that just upgraded tesla. 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. Wesimon pagenaud takesg athe lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission<\/a> free today. 11 minutes left in the trading day. The were now in the market zone. Mike santoli is here to break down the crucial moments of the trading day. We have keith bliss back here as well stocks are lower with the nasdaq underperforming the major averages all three major averages, it looks like the s p 500 and dow on track for a positive week nasdaq a little lower for the week dow is only down 54 points right now. Keith, are we going to see a double top or breakthrough whats your bet . I think well breakthrough. It is almost like the Irresistible Force<\/a> meets the moveable object this entire week weve been trying to get there there is always a slight pull back that is clearly the market everybody is aiming for. You just heard congress wom waters being aggressive with her rhetoric about getting a deal done but again, i think, you know, the market will continue to go there. Id live by the axiom. Capital goes where capital gets rewarded yeah. Mike the congresswoman was sparing no fire in her take on the other side could bring to the table. The market seems to be shrugging that sort of thing off what do you think moves the market beyond this week . Yeah, jon, it sis this week its been engaged in just digesting a 5 one month move i think people, you know, yes, we ran right up to the all time highs. But it also came on the sprint that came above the june july levels what moves it from here on out, the market is creating confirmation this general Global Recovery<\/a> theme is reliable in other words, something that market is not wrong in moving in this direction of more cyclicals. The i think that vaccine news is i think pretty much assumed to be in the positive column. In other words, its within this window of a few months out i dont think its about that. It is much more about i think traders trying to figure out if in fact this return to the all time high is fully reflected in the numbers. Also, the big tech stocks flat lined. Theyve not pulled back very much so in some sense, you can say the market is absorbing another wave of, i guess, just sort of calming down of the big Growth Stocks<\/a> as well yeah. All right. Mike, meanwhile, fortnight maker epic games fight against apple is becoming a clash with the titans facebook now joined the cascade of companies pressuring april toll change the 30 revenue cut they collect from businesses for many transactions on the app store. Facebook announced that it is launching paid on line vents for Small Businesses<\/a> to charge users to attend their classes, instruction ands other events like yoga or a cooking class here is the key issue. They asked apple to either wave the 30 cut or make facebook go around it and process event payments via facebook pay. Or let hosts keep the revenue they generate. Apple said no. Google did agree to eliminate their commission well, tesla also has been on a terror lately. Up almost 300 this year. Ive been doing this for 22 years. This is the odder and tougher stock calls weve had. I think when you see a stock rocket like this you have to take a step back and ask whats going on fundamentally, you know, at the company and in the markets perception of it. When you look at Something Like<\/a> this, this is a growth story this is a growth story had a is going to require a lot of capital. There is a potential for this company to leverage this stock price and accelerate growth over the next five years. That is a key. It seems though, jon, almost nobody is literally neutral on tesla. Either you feel strongly one way or the other about it. Has your fundamental take on tesla changed . You know, i think you have to also look at what theyve done recently execution in the Second Quarter<\/a> was pretty good. Its much better than expected and you look at what theyre doing in shanghai, berlin, austin, texas, and the expansion of capacity is, you know, is beginning and coming looks like its going to be real in the near term. The ability to execute on that and put that in place, you know, is changing. Seems like its more real. And youre getting a lot of capital to do that in the future and coming back to the stock price to fund this you know, that is changing our fu fu fund mental view they have a lot less capital built and higher cost and that would stunt growth Going Forward<\/a> from a capital standpoint. There is execution and capital available. Those are two things that are admittedly change fundamentally here so you talked a little bit about why you changed your mind. Talk us through the new price target 1750 how do you get at that valuation which before you were at 800 so, you know, simply 8 1 2 times sales. A premium to some of the high flyer faang stocks you know, i think as you look at this and you know we run our sen a scenario analysis, they can raise 36 billion in one fell swoop here 10 of the current market cap or maybe do that in sort of increments over the next five years. That would allow them, you know, to accelerate growth from 20 on units and earnings over the next five years to something in the 50 range. If you look at that ultimate cash flow that were forecasting in our base Case Scenario<\/a> from five billion to 15 billion by 2025, you start looking at this and the current, you know, price or little bit above that at 1750 is what were estimating starts to look somewhat reasonable. Now the companys execute once on the capital raises and, two, on the capacity expansions to keep us in the neutral camp. Got it. John murphy, thank you for joining us with the call appreciate it. Thanks. Lets hit draftkings. That stock is falling today. Losses widen at the company. Contessa brewer is following it. Contessa hi, sara. Even though draftkings provided stronger than expected guidance and reported revenue increases year on year, shares plummeted to day on the Earnings Call<\/a> and analyst asked about a propose will change in the way daily Fantasy Sports<\/a> are taxed projecting as much as 30 million hit for draftkings but the ceo said, look, the irs rational is flawed and that courts and state legislatures have already decided this issue. It is dependent on professional sports especially the nfl proceeding as scheduled. On the call, theyre seeing a strong uptick in users here, sara of. You mentioned the nfl is really important he was hopeful theyre going to figure it out. What do you do with the stock . I think i just sit on the stock right now. Sports will come back at the College Level<\/a> and professional level. Its going to depend on how much dry powder they have on the balance sheet. I think its a tax story here though especially if we have a change in the white house in the senate after november elections. Theyll change the law to get it its been part of the bull thesis two minutes, a little less than that to go in the trading day. Mike, we just saw the dow go positive on the session. A little buying action here. A little bit of a flurry of buying into the close. Nothing too aggressive under the hood its been to the Positive Side<\/a> most of the day. You see advancing volume, 1. 6 billion shares well ahead of declining volume outperforming what is happening at the index level take a look at the average stock this week versus the s p 500 it was another week where you had slight outperformance by the equal waigted version. So the average stock doing better than the big cap indices. Finally the volatility index has already stayed range bound in the low 20s, giving way under 22 right here you think such a calm market it would drag lower perhaps still waiting to see if you break above those highs before we there, guys. Yeah. Mike, weve got seconds until the close as you mentioned dow is positive at this point. S p 500 still slightly in the red. Nasdaq the worst of the three. S p 500 and minerals are in the positive space retail names, transports, communications but overall, everything looking pretty flat. If we were to look at some individual names particularly the larger names and how they have done up to this point, apple, microsoft, amazon, all them just about flat amazon a little more to the down side alphabet also right there down about 1 sara looks like were getting a positive close there yeah. For the dow on the week and day. Jon, thanks. Welcome back to closing bell. Im sara eisen in with jon fortt along with mike santoli. Just wrapped a week, third week in a rove gains fw of gains forp 500. There is the dow, managed to close positive 3shgs 4 points. Spent part of the day there. S is been wavering all day long around the flat line was a pretty quiet trading session better retail sales earlier in the day the s p 500 closed as wilfred would say, bang on flat. That masks the strength behind the move energy, industrials and financials led the day y utilities and health care were the lowsers. For the week as a whole, got strength from the cyclical groups industrials up 2 . Energy 2 . Consumer discretionary, 1. 5 , the nasdaq closing down for the day. 2 . And pretty much flat for the week here we are for the nasdaq the small caps down about. 1 on the day. Its been a fortnight since tim cook was grilled in congress about antitrust issues now apple is under fire again. Sued by fortnight parent epic who made a video mocking the role as a powerful gatekeeper and facebook joined the fray pun lickly criticizing apples position thats become a major risk for the company . Were going to talk to the founder. Joining us to talk about the market today though, first keith bliss of capital usa is still with us. Iq capital usa robert nobles, chief Investment Officer<\/a> joins the conversation first we go to you, mike the Market Action<\/a> today which is quiet. For the week told a strong story about the economy with the pop in groups like energy and industrials. What was that about . Yeah. The market still feeding off of a few things that are on the Positive Side<\/a>. One is just this pretty defined down turn in the rate of case growth and covid19. Its been a backdrop for a few weeks now in the sunbelt seems as if the country sort of weathers that surge. Thats in the background youre seeing demand for cars, trucks, moving of stuff around the country. It is looking good and globally is holding up. So it seems hike the playbook for the early economic Recovery Scenario<\/a> is under way at least on a subtle level. And then, you know, the big tech stocks have rested but not fallen apart all that together i think coming right as you approach all time highs when youre seeing some Trader Sentiment<\/a> and positioning indicators start to look slightly overheated, i think a pause makes sense right here i dont know if its going to translate into you actually have to have a little bit of a slip back in the indexes to sort of reload the buying interest and get over the highs or anything like that. But so far, the message below the surface is relatively positive as a take away on whats happening in the economy. Yeah. Thats the question. Is it from the big picture perspective . Robert nobles, if youre playing at home and investor and taking a breath this weekend, what do you do do you trust the trend how do you protector position yourself given how strongly the market has run to this point well, welcome thank you for having me on today. I would say from our standpoint, you should trust the trend were looking at several factors that gives us some optimism over time in the market you know, were looking at the pace of virus cases on daily basis. Where the spikes might be. And were seeing some slowness as everyone has noticed in the number of cases on a day to day basis. And, you know, we have a lot of things that we believe are helpful to the market standpoint it may have run here a lot lately we still can see more upside Going Forward<\/a>. We look at things such as the stimulus bill that is soon to be passed you know, we may get four to six weeks from executive orders of President Trump<\/a>. We look forward to a stimulus bill to carry us envelope the end of the year. We have lots of cash on the sidelines that can support the market Interest Rates<\/a> that are very low and likely persist after the that level for some period of time we have a very accommodative Federal Reserve<\/a> that wants to do anything it takes to help the economy stay on track. And weve had other monetary accommodation from the other global Central Banks<\/a> outside the u. S. Ill tell what you is going to make this a big deal or turn is what is the consumers and businesses willingness to take on risk . You know, there is a period of time before the vaccine appears do you want to be in the beloved tech stocks that led us higher throughout this bounce but have underperformed this week and in recent weeks or do you want to be somewhere more exposed to a better economy like the industrials or Energy Stocks<\/a> which did well this week and Consumer Discretionary<\/a> it is royal caribbean, wynn resorts, mgm, tapestry, names that had been beaten down through the crisis that led us higher this week well, like all situations, its going to depend upon your time horizon if youre playing the trend for a short term trade and i look at that quite a lot, we still dont have the broader markets overbought yet so if it people are going to pile back into the tech names, that may be good for a long her term trade eventually were going to pull out of this and see some of the names like marriott or live nation or cisco or some of those that really got, you know, punished during this time but will come back that might be a good place broadly speaking, theyre in the russell 2000 that lagged for some time and certainly during this pandemic crisis because people are really weary about whats going to happen in the u. S. As the news gets better if, we dont have infection spikes as kids go back to school, if we dont lock down the economy, if news on a vaccine continues to trend positively, that may also be a good place to put some money. A lot of the names are beaten up over this. Longer term, you should see Value Creation<\/a> coming out of those out of that sector and that index. Yeah. Well, market is one thing. Economy is another minneapolis fed president joined closing bell last hour heres what he had to say about the economic recovery. The path of the virus is going to determine the path of the economy. So the most important thing anybody can do is get our arms around the virus until we get there, im not sure that there is a lot more for the fed to do right now. Once we get the virus under control and its really time to put everybody back to work and to restart the economy as aggressively as possible, there may be more that the fed can do. In the interim, there is talk about our Forward Guidance<\/a> and providing stronger commit ments that keep rates low. That may be something you see coming in the future i think right now the fed is in a good place given the action thats weve taken robert nobles, we are talking about an accommodative fed he sound a bit concerned about the virus. But the market seems to be shrugging that off the market is always looking forward. And the virus is traumatic and still a major disease, its people are starting to find ways to work around it. Theyre going out with masks theyre hopeful for the vaccine. And theyre just starting to more or less somewhat grin and bear it and just starting to continue to go around their daily lives. But, you know, its still a major issue. They Keep Companies<\/a> up and running. The economy is make something progress weve noticed the Unemployment Rate<\/a> is down to 10 . Thats about where we topped out the last two recessions. Its going to be a slow grind from here to get that number lower. And more people that work, the more spending that occurs. Owe tipped the hand of the fed about Forward Guidance<\/a> saying theyre good now theyre all in fwhaut they could do that. And that might come. Is that a stimulant for the economy . I think its more of a reassurance. I think its widely expected as well that theyre going to have more xplisive Forward Guidance<\/a> of exactly what it would take for them to, you know, vary away from the zero Interest Rate<\/a> policy and, you know, whether that also means control of longer term treasury yields or not. Thats unclear one thing can you do is look at the bond market this week. And, you know, in the last ten days, the ten year treasury yield is up from. 5 to almost. 75 . Very small move in absolute terms. But it does have the effect of make being the yield curve look steeper. In a way, it is saying that a lot of what the fed wants to see happen is being detected by the markets which is, you know, rising Inflation Expectations<\/a> toward normal. Maybe better growth down the road so all that stuff seems to fit together boy, they definitely are Risk Management<\/a> mode. I dont think the market should or will fear them moving off zero for the foreseeable really and the investment horizon my wild cards out there anything youre concerned about . Well, one concern that i have that could derail this a little bit is we will likely see through the Fourth Quarter<\/a> some more corporate impairments if not bankruptcies especially around retail establishments as they continue to grapple with it and they didnt have a lot of cash on the balance sheet. The one fear that i have that can really seize up the market and markets is if they dont have those that are struggling and ailing and even in bankruptcy reorganization if they dont have adequate access to working capital which can keep the employees employed while they work out the situations, its banks will start pulling back in that situation if it we get into a credit freeze or seizes up and that market seizes up if, the government doesnt step in and provide that operating capital liquidity, then that could really derail what were doing here in the market and changes my thesis completely about which direction the stock market goes from there mean time, we have breaking news dom chu has details. The focus on financials, we know thats a huge part of the portfolio. So lets take you through the highlights here. The we have seemingly large reductions in many of the Financial Holdings<\/a> here so far it turns out that there has been a 27 reduction of quartering of the wells fargo stake. A 62 reduction in the berkshire stake in j. P. Morgan a 42 reduction in shares of pnc financial. A 9 reduction in the stake in bny melon. And also it looks like a dissolution of the stake in Goldman Sachs<\/a>. Were continue to go through these now. We noticed aside from the financials a in you stake in barick gold. The focus on financials big right now. It seems as though theres been a reduction in the shares over remember, we also heard earlier after the deadline for the 13 that theres been an increase in the stake of bank of america. Well continue to comb through this a big reduction in shares of wells fargo, pnc financial, j. P. Morgan, bny melon and Goldman Sachs<\/a> as well. We send things back to you yeah, wells fargo in particular down after hours almost 1 . Dom chu, thank you mike, its too bad wilfred wasnt here, he would love to hear about this and suspected this a lot of people did with berkshire selling, especially the wells fargo stake. I dont know if the expectation is if they would close that much very, very rough numbers. A two billion reduction in the stake. He is reupping a bet generally speaking on domestic banks through that buying or was it more or less a swap reallocation from at the big heavy wells fargo allocation into b of a barpg of america was prefer order diversifying away from the other holdings Goldman Sachs<\/a> is interesting he did get out of that i think that was known the stock is going on to do okay since then. Warren is holding on to that apple stake though he is funding everything hes doing. Exactly we want to say thank you to keith bliss and robert nobles for taking us into the weekend me pleasure coming up, fortnight maker epic games releasing this video mocking apples dominant role in the tech ecosystem today is the anniversary of the platform unification directives for years they have given us their labor and their dreams yeah, thats got to sting faz that arent enough to sue apple for antitrust violations a host of other companies have piled on in support. Facebook Just Announced<\/a> a new product and criticized apples position saying google was willing to work with them on App Store Fees<\/a> ple xtvestor imspakt what wel l l exornethis selenite grey is so pretty isnt it . Wow. Jim could you pop 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. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. Facebook is the latest company to join the criticism of apple. They refused to wave the 30 cut of in App Purchases<\/a> on a new paid on line events feature. Epic games releasing this ad with apples spot from 1984. Apple itself was the underdog and it was sticking it to ibm. Now fortnight was pulled from both apple and Googles App Stores<\/a> this week of the creator of the Popular Video<\/a> game filed suit against the tech giant saying it isnt seeking monetary compensation but instead its fighting for fair competition in mobile app distribution joining us now is peter rojas, partner at beta work ventures and former and gadget editor peter, good to see you thank you. Do you think this is going to stick this time . I mean just a week or two ago we were talking about facebook and people criticizing them and people, you know, boycotting facebook we dont seem to be talking about that much anymore. Now its apple is this another blip or in serious trouble here well, i would say that epic was ready for this you dont pull a move like this and have, you know, a pr Campaign Ready<\/a> to go a lawsuit waiting in the wings unless youre prepared for a battle and i think the thing that is dangerous for apple here is tim swinney, the ceo of epic and maker of fortnight is, you know, he isnt just motivated by gaining market share or making more money here. I think he actually does have an ideological component to this. Does he believe that monopolistic control of platforms is bad and something he wants to break up and take on and so, you know, epic is in this unique position where they are big enough to matter theyre not dependent on their business 40 are on mobile or primarily on mobile. There are other games. So they have the resources to take this battle to apple that is something that is very dangerous for them not only that, paraphrase hamilton, tim swinney is unique developer and has this diversified group of platforms that he plays in fortnight has its own economic ecosystem the real danger here is that he feeds the antitrust story against apple and against google, right . Do you think investors should be watching the Services Margins<\/a> . The percentage of apples overall revenue is small they can afford to give here p its not going to make that much of a difference for the company. The resalt that rules this he set down for the app store ten years ago or so were for a different internet right . You didnt have as many cross platforms and applications as we do now the you didnt have as much of the Cloud Based Services<\/a> and applications as we do now. I think that the reality is that a lot of the rules, they make less sense than they would have been at the beginning. When facebook and now air b b, they introduce the on line events, the virtual events, the idea that apple should take about 30 of that rather than 30 going to the people who are actually hosting and creating the events, that is something that strikes people as a little unfair i think for epic, ultimately, you know, theyre interested in fostering a very vibrant and successful gaming ecosystem for fortnight or any game using unreal engine. A huge part of the business. The more Game Developers<\/a> that with build a Sustainable Business<\/a> selling games is good for epic 30 is a big tax to pay as opposed to the 12 which they take from their own game store as you know, peter, its not just epic but has gone after apple. Theyre leaning the complaint to the eu who antitrust regulators are looking into this very issue. During that tech hearing where tim cook is on capitol hill, we talked to the cfo of spotify about this issue heres what he said about apple. As a platform, theyre a gatekeeper for us, its really about not having programs in place with disadvantaged competition or things that put restrictions on competitors. And so the 30 fee for in the app is restrictive were rooking for a level Playing Field<\/a> that our streaming st service is competitive with what they offer weve done well in spite of the restriction thats apple put in front of us. How much better would we have done if we didnt have the reflictio reflictir restrictions placed against us its a pile on against apple. Youre an investor in early startups what is your point of view do you think theyre anticompetitive or happy to get the startups on the app store because of the technology and opportunity and access that it affords . Well, its a double edge sword. One of the challenges is its a lot harder to grow an app now than it used to be sometimes just being in there was enough to drive down loads and get people to discover it. Its very difficult to grow your user base without paying for acquisition. And sometimes youre paying apple to show up in search ads against your own, you know, name for your ad so some competitor cant put themselves ahead of you in the search. For a lot of startups, 30 of revenue going out doort is really tough when youre spending money to get the customers in first place so, you know, i think that nobody disagrees that apple shouldnt take some amount of money. Certainly providing stort is a valuable service can you build a real business on top of, you know, the mobile app stores but the 30 is striking people as if not unfair then at least untenable in a lot of ways and just to give an example of tiktok, tiktok spent billions of dollars on user acquisition. They didnt grow just via viral word of mouth. You know, those days are largely behind us. And so for startups starting out, unless you have a huge budget out gate, it can be very, very difficult to grow the businesses peter rojas, thank you very much from wall streets point of view didnt matter much apple is up 3. 4 on the week one way of looking at stocks that doesnt make them look expensive right now. That is after this break you can always watch or listen to us live on the go on the cnbc wel rhtacp. lbeig bk. You say the customers make their own rules. Lets talk data. Only Xfinity Mobile<\/a> lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile<\/a>. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy<\/a> note20 ultra 5g. Stocks closed the day pretty much flat but higher for the third week in a row. Lets go back to mike santoli. Are stocks attractively valued right now . Yeah, sarah the story really is that the way bonds trade and valued right now, tends to flatter equity valuation. It is the only way that stocks do look relatively attractive right now. So right here you have the precash flow yield of the s p 500 companies on a forward basis. So the Free Cash Flow<\/a> yield as it goes down, stocks are getting more expensive Free Cash Flow<\/a> what earnings are right now. Maybe a little higher. This is the baa bond yield and this gap right here is the valuation advantage of equities. Nerd, theyre a little more act traf they have a higher earnings yield than a bond yield. That was the beginning of a 20 drop stocks are more relative to where bonds were trading also here, 2015 into 2016. That also did not have a valuation cushion. That is also in the market ran into trouble they talked about. That the Free Cash Flow<\/a> generation from stocks in a yield starved world. Even if this is an abstraction it is what is backstopping the stock market in one way right now. All right thanks, mike says a lot coming up, who is getting money from the federal government for Vaccine Development<\/a> . And why . Congressman and House Majority<\/a> whip has launch aid probe into potential conflicts of interest th t ecuverah. He will join us next [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. And a highly connected lexus vehicle at the golden opportunity sales event, lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Lets get an update from Frank Holland<\/a>. Here is the update at this hour a fire that burned for two days forced hundreds of evacuations, scorched 1,000 acres and destroyed four structures. The fire is only about 10 contained. Officials believe this fire was human caused family and friends are remembering a murdered soldier in texas a woman whose death brought on cries for change within the military Army Specialist<\/a> vanessa gian disappeared in april her remains were not found until june officials were too slow to search for her and didnt take her claims of Sexual Harassment<\/a> seriously. And kobe bryants induction into the Basketball Hall<\/a> of fame has to wait just a bit longer. He and the rest of this years class of honorees, they wont be inducted until next may. Instead of being held at the hall of fame in massachusetts, it will be held at the casino in connecticut. That is ourup date for this hour john and sara, thank you. Frank, well be watching. Dont miss, everyone Frank Holland<\/a> anchoring Summer School<\/a> special tonight. House majority whip James Clyburn<\/a> says a lack of transparency could bring problems with the vaccine. Hell explain j on the other side of this break its easy to get lost in the economic uncertainty. The volatility. The ambiguity. This moment calls for more. And Northern Trust<\/a> 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. More 13 f filings are coming in lets get back to dom chu. We dug through a little further into the Berkshire Hathaway<\/a> 13f. The company run by warren buffett. It looks as though they have completely dissolved, got rid of the stake in occidental petroleum. They were dif depdz that vidend year ago to help finance the finance of a purchase. They took shares in lieu of a Dividend Payment<\/a> whatever they had in common stock has been sold off. So perhaps an interesting look into what some of the managers at Berkshire Hathaway<\/a> feel about the future of shale oil in this country. David tepers coming out Appaloosa Management<\/a> it looks as though a couple themes on the Payments Technology<\/a> side. New stakes coming up here in some of the payments companies, mastercard, visa, paypal and square all have new positions initiated there. Then on the health care side of things, weve seen some increases in hca health care and boston scientific. Meanwhile, a decrease in the stake in humana by appaloosa so well continue to kind of wade through these right now, those are the highlights between, again, berkshire and now appaloosa as well well continue to filter these through. Sara jon . I tend things back to you. Thank you keep us posted House Democrats<\/a> have begun investigating operation warp speed. Its the Trump Administration<\/a>s effort to fund and deploy a Coronavirus Vaccine<\/a> and treatments representative James Clyburn<\/a> says the process lacks transparency and will undermine the publics confidence in an eventual vaccine he joins us now to discuss welcome. Thank you. What is your concern here were very concerned about the transparency of these transactions wall street sounds good. All of us want to see a vaccine. The fact of the matter is there will be several vaccines but we need for all of these transactions that there be out in the open. People ought to see what has gone on. The fact is were looking at the people involved in this. We see some things that indicate that there may be some insider stuff going on that is benefiting one or two people without regards to what we are really trying to do. Youre talking about the person who is leading up this effort being a former moderna executive . He said hes die vested from moderna. He owns shares of glaxosmithkline. But he said that is his retirement and hes not doing anything with conflict of interest well, when he first there, we talked about moderna and we werent really looking at that we were looking at other things as well. Were not sure were saying maybe nothing is wrong at all but let the sunshine in. And lets see exactly what it is for these people to say well im doing this and nothing is going on but you wont let me see what youre doing so were going to use the powers that we have to shine light on whatever is taking place and maybe its all on the up and up. But we got a gut feeling that it may not be congressman, youre sure to face some criticism saying this in Campaign Season<\/a> is an attempt to cast questionable light on the Trump Administration<\/a> how you would respond to that . I would say simply that dont worry about the Trump Administration<\/a> open up your transactions. Let people see what youre doing. And you wont ever hear from me. Im doing what were supposed to do we just saw last week 765 million going out to kodak and the president said this is a great transaction. When we looked at it, wait a minute here. How is it that Board Members<\/a> and the families of Board Members<\/a> of kodak all of a sudden started making millions of dollars 48 hours before the transaction and now theyre putting it on hold why did they put it on hold . Because we started asking questions. We started demanding some answers to letters swent to tweo them now its on hold i dont know if anybody didnt have a kodak camera. I dont know of anybody who ever had a kodak vaccine. They have absolutely no business getting 765 million to do pharmaceutical stuff when all theyve ever done is make photo cameras. The. That was a move that attracted a lot of attention in the markets as well. I want to ask a broader question of you having to do with the economy and politics we are heading deeper into Campaign Season<\/a>. Senator Kamala Harris<\/a> who is the presumptive nominee on the democratic ticket for Vice President<\/a> is from california Vice President<\/a> biden is from delaware this is going to be the rare democratic ticket with no southern representation. Obamabiden notwithstanding. Your view, what is the most important economic issue in South Carolina<\/a> this campaign that you want to make sure doesnt get overlooked number one, South Carolina<\/a> right now is covid19. That is a Health Care Issue<\/a> and big economic issue we want to get beyond this pandemic and if we get beyond this pandemic in a meaningful way, well take care of a lot of the Economic Issues<\/a> that we have in South Carolina<\/a> but to do that, we have to fix our health care. There is broadband deployment throughout South Carolina<\/a>. We need to have Community Health<\/a> centers establishment in the community distance of every person in South Carolina<\/a> were ignoring it for a long time and we also know this will not be the last one. So we need to get communities and families in positions to weather the storm the next time out. So that is the biggest economic issue going on in South Carolina<\/a> right now. And ill tell you, biden, you know, i know a bit about delaware del zel d delaware is a Southern State<\/a> delaware was a part of brown v. Board of education and joe biden calls South Carolina<\/a> the second home he spends a lot of time in South Carolina<\/a> he has in the past i hope he will make this his white house when he gets elected. Congressman, i want to get you on the record about another issue that is very much in the news that is the disaster happening at the post office what do we do about this is your solution to throw more money to fund the post office . Can we get real reform so that doesnt live rolling crossice tois crisis, Something Like<\/a> this doesnt happen again well, so much as we have a president. He has no records for the constitution and the post office just happened to be inside the constitution of the United States<\/a> no, we cant keep it from happening again. We have to make sure that we have an electoral process that people could have faith and confidence in. There was a feeling about a long burn our constitution is burning. And what we have is United States<\/a> senate as an orchestrator in the background while our constitution is being torn to shreds and Mitch Mcconnell<\/a> is the maestro. We need to wake up this constitution is under threat and this post office stuff is the tip of the iceberg all right thank you representative clyburn for being with us. Thank you have a great weekend. Up next, shares of Wyndham Hotels<\/a> rising 20 after taking a big hit from the coronavirus pandemic well discuss the recovery with wyndham ceo after the break. Thats why Td Ameritrade<\/a> designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade<\/a>. Visit tdameritrade. Com learn shares of Wyndham Hotels<\/a> rebounding up 19 the company seeing more than 40 occupancy rates at the locations across the u. S joining us now is wyndham resorts and hotel ceo geoff bellotti thank you for having us back. So give us a little color behind that 40 occupancy rate what you are seeing across this country from travellers . Actually, its a lot better than that, sarah you had us on friday afternoon eight weeks ago. And it was nine consecutive weeks of increasing occupancy. Were the Worlds Largest<\/a> Franchise Company<\/a> in the United States<\/a> we operate 6,300 hotels. But we can now say that for 17 consecutive weeks, week on week, our occupancy increased. On top of travel demand we see from the business travelers who stay in the select Service Hotels<\/a> across our country. Business travelers like regular business or youre getting it from a different source we travel much more i dont know anybody doing business trips. If you remember, we travel we cater to the travelers that need to travel think transportation, logistics, think construction workers who back eight, nine weeks ago were having to work in reduced shifts it is operating as a business as usual. The every day travelers that stay in our hotel, certainly the white collar travel is down. But thats not what we appeal to we appeal to the every day traveler that is on a contracted business out there and needing to travel. The sort of road warriors if you will you know, its great to have you once again, geoff. I want to ask you white collar travelers who i think of when i think of golf and you guys are Title Sponsor<\/a> on the pga tour, do you have to change what you expect from that kind of marketing spend . You have to change your call to action to make that worth while in a time like this . Absolutely not. I mean, we love this tournament. It is just great Brand Awareness<\/a> for wyndham. This will be the most watched championships given whats on tv and whats not on tv and we have we have a really duty to our franchiseees to get that Brand Awareness<\/a> up. Well be interviewing and talking to the players the there is great interest in whats going on out there on the course right now and well be advertising throughout the weekend some really special offers that are driving business direct to our hotels stay one night, stay two nights and get one night free at any of our 6300 Hotels Across<\/a> america. So, look, were ramping up the Marketing Efforts<\/a> right now given the increasing demand that were seeing from the leisure traveler but as a Title Sponsor<\/a>, did you get any concessions from the pga . Its a completely different experience you dont have the fans there. You dont have the lounges and Everything Else<\/a> that you can put your name on and be in front of. We are always talking with the pga, sara. Theyre great partners of ours and were working through that as all the Title Sponsor<\/a>s on the pga tour are today geoff, im hearing about adjustments that a number of hotels are making to guest concerns during coronavirus. That sometimes people want to enter from their room from a private entrance sometimes theyre concerned about ventilation. What sorts of changes have you made what demand are you seeing for perhaps a different type of product than you would during normal times sure. Every week, jon, were upping and increasing our standards you are right. That is what consumers are most concerned about. We with the rest of industry just two weeks ago required not only our team members but all of our guests entering all of our Hotels Across<\/a> america to wear facemasks. Not popular in certain parts of the country. Something we felt very was very important not only to our team members but to our Small Business<\/a> owners. In addition to all the steps that were taking and including requiring hospital grade disinfectants, the social distancing measures that the hotels are taking, but beyond that, to your question, you think about how uniquely positioned the economy and mid scale hotels in this country are, 99 of Hotels Hotels<\/a> are select service, 70 of them are operating now above a 40 breakeven occupancy level so there are guests in the hotel. That driveto traveler is in over 90 of our 6,000 units in the United States<\/a> of america walking into a room where that airconditioner unit, that heating and cooling unit is an individual unit that is bringing in fresh air from the outside. And yes, theres certainly more awareness about how this virus is spread. Thats in many cases providing comfort to so many of our guests thank you again coming up, minneapolis fed president on why stocks are closing in on all time highs take a look at shares of barrett gold, popping up more than 6 . Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies<\/a> for 50 instead of paying thousands. All Commission Free<\/a> online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. An army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. Ulookentertainmentoure the experience xfinity x1. T 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. Up next, why have stocks rallied back so fast hianerig spred president s sw mhturise you. Tirement plana gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. And their financial wellbeing. Since our beginning, our business has been people. 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. Experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing. At your lexus dealer. Liberty mutual customizes your car insurance, exso you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. We spoke to minneapolis fed president Neil Kashkari<\/a> the last hour we asked him to exmaplain how t stock market currently trading at alltime highs stacked up with the sluggish economy. I think the Federal Reserve<\/a> was more aggressive in this crisis than it was in 2008 in providing this massive liquidity. We took the risk of a Financial System<\/a> collapse off the table quickly. When you take that risk off the table, i think that provides a lot of support to markets and youre seeing a lot of liquidity in the system. That does find some of its way into asset prices and stock prices and bond prices i think thats partly reflecting that its refreshing to hear a fed president say part of the reason the market is at a record high is because of the fed and the li liquidity, which we know and we talk about all the time but they dont often come out with it like that. How much longer can this massive infusion of stimulus money growth continue to prop up this market next week were going to get a bunch of housing data, retail earnings, the Democratic National<\/a> convention. I think the way he characterized what the fed has done has helped the markets is by cushioning against that worse Case Scenario<\/a>. If youre an investor, your remaining range of possibilities is more skewed to the positive that plus the fact that these very resilient Business Models<\/a> and these huge Growth Companies<\/a> added a few trillion dollars, i do think theres a case to be made that the market looks at that and says why isnt that always the case when we have a shock that congress and the fed can do more. The limits come into play when the investors start to believe its up and away, when they get fully invested, when they start to look beyond the risk. I dont think were quite there yet in terms of positioning and mindset, but maybe getting little closer if they look at how professional investors are positioned in terms of what were looking for, anything thats going to give encouragement that underlying the economy is actually grinding back to life i dont know thats necessarily something thats going to come out of the Retail Company<\/a> earnings next week, but what they say in terms of their outlook i think will have relevance. Were getting close to a lot of things happening. Im surprised there hasnt been more Market Reaction<\/a> to polls showing biden polling pretty strongly and the possibility of a democratic sweep. Its interesting because this rally has coexisted the entire time with the polling advantage for the democratic ticket. I wonder if the market doesnt see huge swing factors for the stuff it cares about in this election first of all, the idea that the election still is probably going to be closer than the polls now say. But also weve already kind of expanded the budget deficit to this point its not clear that after what the market has gone through already, anything that happens in the next administration if theres a new one is going to be as significant as the shock we already lived through and the response to it. Thanks, mike. That does it for closing bell. Fast money begins right now. Im melissa lee and this is fast money. Brian kelly, steve grasso, Pete Najarian<\/a> and Bonawyn Eison<\/a> a streami ining smack down, ite tumbling with fraud allegation plus draft kings dealing a losing hand today on wea","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia601908.us.archive.org\/5\/items\/CNBC_20200814_190000_Closing_Bell\/CNBC_20200814_190000_Closing_Bell.thumbs\/CNBC_20200814_190000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}