Dom chu, the markets in particular you can see here 3385 is where were at on the s p. Were a stones throw, kind of spitting distance from there 3393 is the intraday record high, so those two levels to watch. The dow underperforming with the nasdaq returning to that leadership position almost a full percent today record levels of home Builder Sentiment to the upside. A far cry from where we were four months ago with regard to homeBuilder Sentiment. If youre looking for a marketplace for better days ahead, check out whats happening over the near term with etfs. They both track Home Construction and stocks. Look at the massive surge weve seen from those particular etfs just since the covid lows in march. Remember, a big deal responsible for a lot of jobs in the economy as well. Well watch that trade the stock of the day so far is nvidia they are up about 7 today driven in part by analysts in succesquehanna who have put it high, already up again 210 in just the last year nvidia raising that tide for all the semiconductors watching that trade as well. That has been an incredible run. Dom, thank you very much as markets continue their climb, wall street strategists are working to catch up. The s p target 3600. Does it mean the rally is for real or does it mean the ride is mostly over now . Joining me is simian hyman and phil at jp morgan investments. Phil, explain. Its exciting, kelly, but its really exciting right now not only do we get the resiliency in the efficacy market that weve had in the portfolio, but for the First Time Since 2017, were joining that in the u. S. With overrates to europe aoverweights in equit. From early march to early june, it was all driven by fiscal monetary policy. Whats really exciting right now is were being validated with this information with Economic Data if youre overweight, the u. S. Overall markets and europe, how can you be overweight in everything because Interest Rates are so low, kelly, were funding that position from fixed income fixed income, especially core fixed income is very tough wed rather be in credit than really safe fixed income, and its a new global cycle, kelly if a new global cycle is happening, thats not a u. S. Exceptional story. Thats europe in emerging markets and watching the dollar weaken the past couple months is rallying that position if youre an investor in the u. S. And youre investing abroad, you want that dollar to weaken its fascinating weakening dollars help multiple markets, obviously helps europe phi were in a new global market, simian that suggests it could go on for some time. Would you share that optimism even after what weve seen in the market this year the Economic News has been a little bit better than expected and earnings season was a lot better than expected typically in the u. S. , i dont think you can take it so far across the board, and obviously im talking about the evaluation of tech stocks were at nine times the price of the book due to the s p 500 value index. Were about as high as we were at the bubble. Yes, they make money this time around on the flip side, value is a little junkier, but if youre looking for rotation, i still think that the quality story makes sense. Think about this the value index has had about 20 of its names cut its dividend so far this year. The s p has had about 15 of its dividend cutters if you look at the s p dividend aristocra aristocrats, one in five have cut their dividends. The quality in the middle of the style box is a place thats had a little bit of a discount and a little bit more robust for what will probably be a choppy recovery one more thing on that, simeon, what happens if the pandemic is just an acceleration where the companies that are going to be winners in the next five to ten years in the dij ties digitized economy are just in favor and maybe you wouldnt want to own some of those cheaper names, so to speak im on the same page. I dont think you want to go deep value right now, and i dont think you need to completely abandon technology where there is a longer term story. As an example, tomorrow we get the ecommerce report following um on retail sales from last week i think were going to see an even bigger surprise to the percentage of retail thats moved online we know that thats partly a lockdown story, but thats got legs that were starting long before the pandemic and likely will continue long after so theres certainly pockets with a longterm story to it, and deep value, i agree, im not sure i want to be there because it needs such a vshaped recovery before we go, phil, quickly respond to what simeon said. Would you be telling people even though youre overweight, the u. S. In general, avoid big cap names . We are still leaning slightly toward growth, kelly, but wer not adding to that this is all the same trade if the fed is successful at promoting s p expectations, and rates have trickled higher if theyre right about inflating things in the next couple years, that value story will play in a pretty big way we dont want to overrate t overweight the value because it should be higher thank you both. Lets talk about the dollar, the index sliding down to new twoyear lows continuing to weaken and now hedge funds to short it for the first time in the next couple years. Rick santelli is here. Rick it makes a lot of sense because things change right around june. One of the things that may have changed the most were all those dollar funding issues. Lets look at an emerging market etf starting in june you can clearly see it really has done quite well. From 38 to 44, thats about 15 up in that time period and we know that emerging markets have done well, but so has europe, especially considering sharing debt so put in an eu chart, a currency on top of that, and you see they move together but one thing that doesnt move with the euro or the merging markets, and thats the dollar index. Lets look at year to date etf with the dollar index and there is your big story. We continue to see the dollar moving down, we see the merging markets doing better, and in the final analysis, maybe higher rates on the back side as our last guest was talking about could reverse it, but for the moment seems to be flashing yellow for the dollar and flashing green for the euro and the emerging markets kelly, back to you rick, we often talk about when hedge funds pile on a trend one way or another, sometimes its contrarian. What is their record of making bets in general . Does this tell you maybe people are too consensus on its weakening . What i would say is they overcompensate on the notion its a reserve currency. I think piling in isnt a bad idea they might be a bit late, but ultimately, remember, Foreign Exchange tends to trend for long periods of time. I think theyre going to be okay for a while. Its going to be the good news of the future that hurts that position as less stimulus is needed in the long end and the curves steepen, that will be the undoing of that hedgey trade you wonder just how close we are to that junction rick, thank you, sir rick santelli, we appreciate it. Lets switch to nancy pelosi calling lawmakers back to capitol hill this week to vote on a bill that would bar changes to the u. S. Post office over fear of mailin ballots. Eamon javers reporter as you say, speaker of the house nancy pelosi is calling congress back from their summer vacation. Theyre off campaigning and going to the Democratic Convention this week on saturday, though, they will come back and vote on a bill that would give 25 billion to the u. S. Postal service which is really struggling. Its also going to roll back some of the changes that have been put in place by the postmaster general democrats worry those changes are sabotaging the Postal Services ability to conduct mailin voting in the election this fall. The president for his part continues to tweet and spoke to reporters today as he departed the white house, venting some of his criticisms of the Postal Service, saying its been mismanaged for years and also saying that mailin voting is a, quote, very dangerous thing. So just how bad is the financial picture at the post office the q3 report is out 17. 6 billion in revenue for the Postal Service, over 19. 8 billion in expenses. Do the math, that gives you a 2. 2 billion net loss for the Postal Service just in the third quarter. So they are losing a significant amount of money there. And you look at the way the pandemic has really changed the Postal Service in terms of its operations all of the stuff that you get in the mail is down for the most part, except for shipping and packages so marketing mail down 37. 2 , first class mail down 6. 4 , but shipping and packages, as weve all shifted to this sort of work from home amazon package dropoff at your house, all of that is up 53. 6 . So some big changes for the Postal Service during the course of this pandemic, and they do need some money. Democrats say that funding is on the way. Well see if the president is inclined to sign a bill in the senate, kelly. There are so many issues with the post office. The question whether they can get ballots to people is a pending question of whether mailin ballots are a good idea . Sure. There is one thing which is the practicality of doing it the second thing is should it be done in the first place. The president says mailin voting is ripe for fraud he says foreign governments could meddle in the election using mailin ballots. Democrats say, no, thats not the case, and because of the pandemic, more americans are going to vote by mail this year. Its expected in any year previous to this its going to be a test of that system and the integrity of the election themselves. Democrats say they worry that the president , through the postmaster general, is meddling in the post offices ability to have a Fair Election they said it could be months or years before we know the result of this election if the bulk is done by mail the president says thats not a good result. The democrats say they can tally pretty quick and they should have an election eamon javers, thank you were going to speak with one analyst who says the vaccine stock could be part of the euphoria we saw in the pot stocks we all know how that ended baba, bullion and big apple bookings all of that ahead, too stay with us you say the customers make their own rules. Lets talk data. Only Xfinity Mobile 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. 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 note20 ultra 5g. Welcome back as a lot of Companies Receive trials for their covid19 vaccines. Their stocks have been on a tear take a look at novavax, biotech and moderna. My next guest says vaccine stocks could be the next pot stocks tell us about the similarity you see here, jared holz thank you for having me, i really appreciate it these vaccines seem to be their own separate universe with respect to performance, with respect to different trial managements and the result it just makes me think back to the marijuana stocks of 2017 and 2018 where we saw a very similar setup. These were all sort of penny stocks or the equivalent to that, and then they exploded when the Investor Base thought this was going to be the next, you know, leg of growth. Look at them now, theyre all trading much closer to multiyear lows than multiyear highs as the crowded nature of the space and reality has set in im not suggesting that the data sets were going to get here are going to be unequivocally negative, i just feel like were in the same sort of psychological zone we were in back then. Yeah, and youve compared the market caps whereas cannabis stock started out worth 2 billion, then they circled to 41 billion. There was scotts miracle gro and you take that out and it was even less. Vaccine surges started at 32 billion and now theyre at 165 billion. I know the government is not seeing this to be a major profit engine thats totally right. When we look at the number of players here and what the government has already done in terms of funding, weve gotten almost 10 million worth of funding and thats a combination of Development Effort but also procurement. So buying the vaccines, buying the injections before we even know what the phase 3 data is. I think just based on the comments out of the large pharma group, johnson johnson, merck and others, it seems like the other companies will be more aggressive on price or at least cognizant of the fact were dealing with a pandemic, so how much theyre willing to charge, i think there will be at least some sort of sentiment around as far as what theyre willing to take yeah, and moderna as well you could argue, well, they have more at stake. They have more expense and more kind of on the line for this, so thats why there may be less negotiating on price but i think the bigger issue as well from all of us who are curious about when this vaccine will be developed and how quickly i dont want to put it quite this way, but do you think none of these, quote, unquote, vaccine names are going to come through and have a vaccine in the end or are you saying even if they do, you got to be careful because of the way theyve been trading. Yeah, the latter point, kelly, for sure. I was with you a couple months ago in terms of, you know, trying to get ahead of what we thought was going to be a very accelerated approval timeline prior to the election, and i think you see a lot of politicians, including the president , sort of echo that view over the past couple of weeks. But to your question, even if we get several of these vaccine players that could have good data, its going to be, you know, several companies, if not more, that are buying for this market share in what i believe is going to be a very, very price sensitive market furthermore, we dont know how long covid19 is going to last so many of the experts have been wrong with respect to the duration of this virus, anyway so what if coronavirus goes away in 2021 or, you know, better off, sometime this year . What happens to the valuations of these companies if we get through a period of time where the virus is less severe there are so many things to consider here, and i think the number of players, the level of competition is also one of my concerns here. I just want to ask you before you go to make sure people are aware, youre approaching this as a Health Care Expert strategist so these valuations are in front of you every day. What would you recommend to someone who wants exposure to a vaccine maker, if not someone we already mentioned . I think the less risky is to own the large pharma Cap Companies that have some basis or stability under the vaccine themselves that would be astrazeneca, merck and sanofi if youre not paying for any of those programs, i think in addition i would be recommending the manufacturers, the Research Organizations that are involved in all of these companies. Its sort of like the levi strauss of the gold rush when you see the levels jared, its good to have you. Thank you, sir jared holz of jeffries amazon and facebook may be the most highprofile names that investors are buying these days, but believe it or not, they are not the highest bought plus, unethical. Thats how one of our guests talks outhabt e changeup robinhood. Were back in two. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. Welcome back to the exchange. Lets get a check on markets the dow is kind of the kid left sitting out of class today hes down 53 points, but everybody else is positive and thats where the major headlines of the session come in the s p 500 is up a third of 1 , 3385 were just a point below its alltime closing high, 1886. The nasdaq has already achieved that, but in the last couple minutes it hit a new record intraday high. Now a new intraday high in the s p. Heres some of the individual movers were also on apple 2 trillion watch this afternoon apple would need to hit 4457 were at 458 per stock today overstock is an unploobelievaby volatile name, its up 22 today. Virgin galactic is coming back to earth watch delays are highlighting an uncertainty. Its under 18. Finally take a look at bitcoin its trading back at 12,000 thats the highest level in more than a year, flip side as weve been talking about in the past hour lets get to sue herera for our cnbc update. Sue . Hello, kelly, hello, everybody. Some disturbing new numbers on covid and kids according to the cdc, the number of children infected with covid19 is increasing a little over 7 of all reported cases were among children as of august 3rd children make up about 22 of the u. S. Population. Cook county states attorney general kim fox is found to have abused discretion in the case of actor Jessie Smullet they found abuses of discretion and failures a heat wave continues to scorch the southwest United States 130 degrees was recorded in the death valley of california it is said to be the highest temperature ever recorded on the planet death valley also holds the record for the highest temperature ever, 134 degrees set back in 1913, but that number is disputed due to the lack of modern technology at that point suffice it to say, kell, it is really, really hot out there yeah, and we experienced that the last couple weeks on a more modest way over this part. Sue, thank you very much when we think about stocks that investors seem to be piling into this days, we often think of apple, amazon and facebook. But you might be surprised its not the famed heavyweights that are overbought dom chu is here with more. As we talk about the moves that weve