How apples shakeup is driving the blue chips plus the online surge, best buy notching is 242 gain in ecommerce sales in the Second Quarter but can it last . Trade optimism, u. S. And china officials reaffirming their phase one commitment, the s p is poised to add to its record run. Jim, i saw you last night mentioning those changes to the dow and your general point was dont be fooled in thinking there is as much money indexed to the dow as to the s p. We said that last night, its been the theme all morning and theres been no sellers. One of the reasons theres been no sellers are the people who are now trading stocks in early hours have tremendous conviction in the face of being wrong its rather incredible because the hubris of these people they must think dow jones has a lot of money to it and it has to come out of exxon and into salesforce david, you have been at the forefront of the network in explaining the nature of the dow and you see this, too. Arent you shocked that even after we say that this is not necessarily the right thing to do that the buyers get more fesh oesh ferocious . I try to not ever talk about the dow jones because it is a statistically irrelevant index given its price weighted. You can look at a chart and see it make sense, the s p of course is market cap weighted although lately weve talked a lot about how even that index is not necessarily reflective of the Broader Market any longer given the incredible weightings of five enormous companies in it, jim. This is a snapshot of a moment in time. I think that makes it interesting, to see what the decisions are in terms of what goes into the index and out, but i kind of leave it at that to your point there is a little bit of money, maybe 5 million shares need to be bought, but so little it is not like the s p at all, there is hardly any money index against the dow jones as you say, jim i always come back to the fact while its an interesting snapshot the dow is not a statistically relevant index sorry. It is curious, of course, we have amgen which is a not particularly fast gross drug company replacing pfizer which is a not particularly Fast Growing Company but is very big. We have honey wisconsin try to reinvent itself as a software company, considered to be the gonel gaininger. The doppelganger sales force is a company most people dont know what it does it makes it so you are a better seller of things, its the way to run your company and digitize it exxon is if we look if you go back in time in 2013 the Second Quarter it was the largest company, in 2010 the largest of all four quarters it was the largest. Even in 2017 it was the sixth largest and 2016 it was the in the Fourth Quarter it was geez, it was first and second. This was a huge company. It has been crushed. I think the dividend is very much in question and they kept chevron, the gall of it. Standard oil of california, they kept the wrong one right they kept the bodies, they moved the grave stones now, jim, there is sort of this highly anecdotal reputation that its somehow a Sports Illustrated cover kind of curse to get added and somewhat of a relief to get exited do you buy any of that no, these are theyre fun. Look, i think what will happen is someone is going to say, jim, you said no and then salesforce reports and that goes down, youre washed up, the usual. I would point out this, i would point out there is no curse and as david said its been you know, its kind of a bragging point. I think i informed mark last night, mark was working en masse and i said this is great whoa its a very nice thing to tell your mom yep yep. It is. I mean, and for salesforce i think they can be proud of it because it is thats it thats what it means. Right. Its, okay, you know, look what weve been able to accomplish in terms of at least the reputation, so to speak, or our importance in the overall market, jim. I will leave it at that. Now, as for salesforces numbers i will leave that to you in terms of because this has absolutely nothing to do with the performance of the company over time which obviously has been extraordinary and you of course having been a big supporter of this stock over that period of time. Since 8, proud of it, but, david, ive every time you Say Something good you have to say im a total knuckle head and got this wrong amgen surprised me amgen was the beneficiary of a Justice Department breakup of a key drug in order to get bristolmyers to be close. The whole move has been because they won a court suit and they got this one drug from celgene i dont think that amgen this is personal pride hurt for pfizer wasnt pfizer riding high on the vaccine . What has amgen got how many divisions does amgen have its weird. Yeah. Well, who knows anyway, its a Marketing Tool for dow joneseven though they dont it is salesforce i bet you they do the greatest crm company and in the dow unlike oracle, you know, unlike google. Whatever how about all right lets get to the heart of things, carl what the hell is walgreens doing in there what is that i mean, have you seen that stock . I mean, you want the dow to go down, you put a couple walgreens in there thats one of the worst. Remember, walgreens was a partner of thernos and that was the hope we could do that all day, jim, playing the chess game of what belongs and what doesnt belong more importantly, jim, was yesterday the influence of convalescent plasma and vaccine hopes, today this phone call with lighthizer and mnuchin and the vice premiere reaffirming their commitment to phase one even though china has to pick up the face in terms of their commitment for purchases for the year how important is that . How surprising is that after the president said he didnt want to talk to them anymore its very surprising because theyve been putting out navarro, Peter Navarro has been on our network, peter is talking about some of the outrageous actions that china is taking and the president is nonstop talking about what the numbers would be like if it werent for the china virus and in the meantime here we go. Game on china. And secretary mnuchin has become the point man for what i regard as, lets say, i dont know, how about, david, how about reason do you like reason david . I will take it, sure. Youll take it . Sure. Reason sounds fine. Reason. Sounds fine, yeah. All right look, we want do we want a china deal some of us are hard line on china, but what this does is i know apple is about to split, but apple is being sold off because its had such a run but they are the big winner if they think theres going to be trade conciliation. Do we really this i that, jim . This formalizes ag purchases to some extent, the chinese by the way need does this really change the tenor between the two countries which has done nothing but get worse . I think its nothing. I know you do and i know you are a hawk on this. Yes. And have been for some time, but, you know, its not like its but why did they do that . Going to help huawei in some fashion or tiktoks owner bytedance or tencent theres so many different roads that have only gotten much more difficult in terms of the relation between the two countries. You can go buy deere, deer has been on fire there was a friend that came out with a sale right before t im calling it illadvised before they reported. Carl, the one thing i would emphasize is that the administration could change its mind tomorrow. So if you are buying these stocks, maybe have a little more time frame than just 24 hours because we have seen vitriol against china, i still think the oracle deal did you see the scoop, david, by the way the journal had a story about how General Atlantic was involved i could what an exclusive. I heard yeah, i heard that somewhere. Im trying to remember david, it wasnt on you broke the story about the celtics getting a pretty good guy. Carl, it is painful. It is painful to be the tv station of record. As long as theyre watching thats whats important. Thats whats important. As long as theyre watching. Dont get caught up in the scoops i played that game for too long. All right im a news guy. Yeah. Dont worry about it. Youre a news guy, thats great and you have to be on t you have to be on it and i love it and you did have the details on this i still wonder about the complexity of that actual offer and the ability of bytedances owners in the form of to be able to monetize their move in to a u. S. Tiktok ownership stake with oracle which, again, does not seem to be as much of the driving force as perhaps microsoft. I continue to believe when youre looking at it from a complexity standpoint microsoft presents the easier deal possibly but lets not forget bytedances owners want there to be another bidder because thats the only way to get near fair value for the asset. Whats so difficult is safra catz is a sphinx you are not going to get anything out of safra catz shes not going to talk, Larry Ellison is not going to talk theyre not leaking like seives. It makes me feel like its going to happen sooner than later because of the stuff with mnuchin. Theres cross currents, theres obviously the tiktok dance, you have the fades one talks. A lot of back and forth between the chinese and the europeans this morning, jim, talking about being strong Economic Partners dave, imd sure youre going to cover this filing for an oip which would give it a valuation bigger than some of our biggest banks. We should spend a decent amount of time talking about this and we will a bit later in the show perhaps, carl, but to your point ann financial will not be listed here and i think thats an important point, one that perhaps mr. Cramer says is a good thing. Yes. I would argue otherwise, it will be listed in shang phi, hong kong, will be the largest Public Offering of all time at least according to the people i speak with, 15 billion of stock sold in the domestic market in china and another 15 billion sold globally so u. S. Investors will be able to own t you just wont be able to trade it here in the united states. What price does the party want it to be. Alibaba does own 33 . Say again, jim. What price is the Party Setting it at . The Chinese Communist party, have they picked the price. Come on. What do you mean come on. Youve literally become Peter Navarro. You might as well be chaim. Whats my handle the student has become the master. Yeah. Ive tried to get navarro to be a little tougher. I think hes worried about biden getting in just kidding no, come on, david, its the chinese do you understand yes, you do. This is an enormous Financial Services company in china created alley paid, they pulled that business out of alibaba, a lot of their shareholders were not happy about it years ago they own 33 , they changed it from getting the dividend to owning 33 , its helped move up shares of alibaba but we will keep a close eye on ann financial. Jack ma still controls that. And who is his hero speaking of speaking of Capital Markets activity and ipos, i want to talk pal anterior after the break, the listing from this Silicon Valley giant is coming up is coming up welcome back, guys i want to talk a bit about palantir, a name at the beginning of this year many would not have expected will be coming public will be hitting the markets fairly soon. It would appear. In fact, were waiting moment by moment for an official s 1 they did file confidentially a while back but it is going to be made publicly the s 1 any moment im told many expected we would have seen that yesterday of course, this is a company the government and Defense Department are a large user of its services but it is commercialized those services in part under what it is its foundry works part of its business as well that part has very large Gross Margins as theyve tried to move towards profitability. Remember peter thiel is a long time investor there, the chairman alex carp the companys ceo has never embraced fully the idea of becoming a public company, but thats where theyre going to go it is going to be a direct listing. Much of this is already known and been reported on by others at this point. We are expecting im told it could be as soon as september 24th that this listing takes place. You will need a road show prior to that, lets call that midseptember before this hits the market a direct listing, similar to spotify and slack, both of which hit a bit of turbulence early on, there was some concern amongst both of those about selling shareholders what may distinguish this as this desire on the part of palantir, jim, to have a lockup on a certain and potentially large portion of the shares that are sold, that would be a new thing for a direct listing i was going to say that until i heard that i was going to say once again weve seen tremendous undervaluations with these, whether it be google back before 2000 or spotify which was completely hacked, hacked meaning cut to pieces by the direct listing youve got something there, david. Youve got something there lock it up might be so that palantir gets a good valuation, i have not seen the financials, by reputation everybody says the same thing which is its sterling. I think their margins are high, still losing money, there were some tech shots s 1 sent gross roughly 50 million, from what i hear, though, they at least are talking a big game at this point about their opportunities amongst corporations not just the government which has been a large user of their services and the prospect of a very strong Fourth Quarter. We will see. This has been a darling of Silicon Valley for quite some time, the valuation has changed. Theyve been able to raise plenty of money in the private markets as so Many Companies have, but there seems to be a hope that unlike Many Companies that were able to do so and therefore push off their Public Offering to the point where they werent growing anywhere near as fast, there seems to be a hope that in this case their larger Growth Prospects are still ahead of them. We had a discussion about this yesterday, sort of related to how covid flipped the switch on a lot of issues, jim, would a precovid airbnb ipo have been as compelling as it appears to be in the offing now no, not at all. Snowflake today im sorry. Its turned a bunch of things upside down. Their business fell off about 80 , they didnt see anything come, they did layoffs, then the tables were turned people decided hotels were more dangerous, lobes, elevators, difficult to clean versus homes. A pool at a home versus a pool thats a Community Pool at a hotel. So now business is off the charts and a lot of the hotels obviously are on the ropes and thats why i think airbnb has gone from a deal we were questioning to being a deal that you have to get in you have to get in now thats terrific. Yeah. Still funny, jim, i still wonder exactly why theyre choosing now to go public. Certainly help in terms of the Broader Knowledge of a company, the marketing in some way that it helps you do, but theyre not raising the money. They are not out there raising the money and obviously they have selling shareholders who have been able to monetize because of all the money theyve raised previously. Look, i think no one thought it was going to be good, even management wasnt sure and now i know that theres people that say i dont want to stay in somebodys house it is the hotels, the amount that are in arrears, versus if you go the value of airbnb, its working and i think it is a great time for them. Which is why i want a piece of it, well, if i could trade. I was talking palantir when i just made those comments, but understood. Okay. Carl . Guys, so many names to get to some of the upgrades in price target hikes for names like starbucks, deere, amd, facebook, chipotle, a new street high on apple. 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The smarter way to workflow. Announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. All right. Time for a mad dash as we count down to the opening bell about three minutes until we get there. Palo alto is the name this morning, jim. Yes, an old name for you, david, softbank, he took this over, bought a lot of stock at 200, has, i think, made a magnificent turn, he has bought a series of companies and made this into maybe the Gold Standard for on premise and for work at home cybersecurity david, reports of a blowout quarter. We have ten price target boosts, weve got two other analysts who didnt boost but said this is the one to own this is a new pattern for this period of stocks that have run we saw it for nvidia, nvidia stock was down 8 after 19 price target boosts. Weve got palo alto down almost 10 and i predict that palo alto if you buy it with all those price target boosts will work. I think they are doing a great job. I had him on last night, very confident. Really doing well with stay at home, work at home, which, of course, is i dont know anybody who works at home, but it must be something oh, hey, carl, do you love it . My wife said lisa we were at mark and keek keys house on saturday, she said, jim what, the hell are you doing why do y