As well as declines in cases across the u. S. Not just big tech winners, jawdropping moves for individual stocks. Roku up 11 . Dicks Sporting Goods up 15. Urban outfitters up 20 weve got them all covered for you. 59 minutes left, what is set to be another record close for s p and nasdaq all we need is a positive finish kayla, welcome. Thank you, sara thank you for having me. Feels like record finishes every senile day we have a great lineup of ceo interviews coming your way on the rest of the show well me with the head of Toll Brothers about his companys strong Earnings Results and whether the Housing Market can keep topping expectations over and over again plus shares of crocs you heard me up. Up 300 just since march we will ask that companys ceo what is driving the foam footwear boom. And also the ceo of etsy says amazon is trying to wipe out its competition by supporting a New California Consumer Protection bill he will join us to discuss that and much more. Its a big show today. But lets get straight to the big story were watching today mike santoli tracking Market Action ylan has the latest. Leslie has a look inside palantiers. And the unusual structure. Starting with the Broader Market, what were seeing. Are we broken records talking about the tech divergence yet again. Broken record talking about breaking records, we kind of are but thais the way it happens these things come in streaks and burnells actually when you get to a record high on a given day the most likely scenario under the circumstances one the next day because the market goes up over time that being said, you did say the broad market, this is a very broad market dow jones toemgts stock market, wilshire 5,000 index i wanted to point out, it is at a new high yes, by far the scene stealing action is in the huge nasdaq stocks, the big tech stocks, salesforce, new york stock exchange, not nasdaq nonetheless, its pulling Everything Else with it. Most stocks, even if they are not up today, are going more or less in the right direction wit. This is obviously a pretty steep angle for the entire stock market to be traveling for a while. It is growing in certain ways, emotional gravity action in fastmoving tech stocks. But its hard to say right now today that things have gotten fully to an overheated extreme take a look at s p 500 and a measure of momentum, a measure of the trend relative strength index. Shows you how far and fast its moving this is coming into today. This going to be high right now. I just want to point out at the upper end of the range we get right here doesnt mean the market pulls back hard or false apart when we get to these levels but it does suggest that the fastest, greatest part of the move might be done. I do want to point out we hung around there in the gentle uptrend. If you get a little higher, by the way, the nasdaq is way off the charts on this measure, then you tend to become very vulnerable to a pullback if nothing else these are the things we have to watch along with senate measures to say if people are getting a little bit too overconfident in the market back to you guys. Theres some strategists that say the market could lose steam later this year potentially around the election. What does the markets breadth tell you about how much room to run p at what point do you think that pullback you just cited could present itself. Kelly, its totally logical to expect sometime between now and the election to have more turbulence it is the pattern in election years, president ial election years. You tend not to have great forward returns starting in late summer also when you finish august at a record high, september is often a giveback month all that stuff makes sense what is interesting is the Options Markets have been pricing in volatility around the election, four months. Theres this sort of bulge in buying of insurance around that date so i dont know if that means people have kind of felt protected against it or just that they have stayed more defensive in their equity exposures because they think that might be coming, which interestingly enough has probably created fuel for this market to go up in the interim because people were not overinvolved in the first place. The breadth is not great but i would say its not a deal breaker in terms of the rally continuing. All right, mike, thank you. President trump meeting this hour with medical professionals to discuss the coronavirus this as we get new results from latest states of play survey regarding how americans are feeling about returning to some sense of normalcy. Ylan mui with the details. Ylan. Im told a private meeting with medical experts, its taking place inside the oval office while in the battleground states our polling shows voter anxiety about the pandemic is beginning to ease. According to our polling with change research of likely voters across battleground states, 66 say they have serious concerns about covid. That is actually down from a high of 87 in april when we were all still on lockdown and the numbers are falling in both the rust belt and sunbelt. As a result we see likely voters more willing to start engaging in the economy shopping, getting your hair or nails done, eating inside at a restaurant or going to a movie theater. Voters told us they feel safer doing these activities than they have at any time since may that could be driving the bounce in our poll for President Trump. 48 now say they approve of his job performance. 47 give him a thumbsup on the job market guys, when you look at a headtohead matchup between President Trump and the democratic president ial nominee joe biden, trump is still trailing by three points back over to you. All right, ylan thank you. I know well be following that closely in the months to come. Lets turn to palantier, the Company Going public last night and outlining an unusual share structure in its s1. Leslie picker has the details. Leslie, how does this all break down hey, kaley, going public with class affirm, class b and class f stock. Before you let your mind wander, the f stands for that. They pair back economic ownership. It takes several pages of explanation in the prospectus but essentially class f has a variable number of votes which adjusts to ensure those three founders maintain 49. 99999 voting control now, thats right. Either below majority control but the founders plus venture backers also hold Class B Shares which command 10 votes each. The class a stock that you as the Public Market investor can buy comes with only one vote per share. Its not uncommon for them to go public with put pell classes of shares quicken rocket debuted earlier this year with four classes of stock. Snap went public three years ago giving its shareholders no vetting rights palantirs f shares makes this one unique, guys. Leslie, stay right there. We want to bring in mike santoli for some perspective on this, mike what do individual investors need to know about this unusual voting structure first of all, you need to know up front youre not going to have a lot of say in what the company does we do have to keep in mind this market hasnt imposed any penalty you can observe or measure on companies that maintained founder control actually more of them 49 something percent found ir control. If you look at alphabet, facebook, not as its straining the valuations of the companies. Im not surprised these founders would try to do it and try to push that extra step of having this provision stay in there no matter how big their financial stake is i dont know that necessarily individual investors are going to have it be an overriding concern whether they own a piece of the business if, in fact, they love the business really, i dont think individuals think that much about the value of their vote in actually operating the company but you know, leslie, its not all together uncommon for Large Tech Companies to have these voting control shares for the founders but i think whats so ironic about palantir doing it, the s1 starts off with this letter essentially railing against Silicon Valley and saying we dont have that much in common with tech brethren, dont like the direction they are taking our companies, find ourselves at odds with them but renewsing to structure shares in the way other companies had to contain voting control for these very founders. Thats right. A lot of people pointing to the irony of that and the fact that from a governing standpoint this looks a lot like the other Technology Ipos weve seen in the last few years with regard to voting control. I think perhaps the antidote to mikes point is the idea that we have seen such a huge influx of capital into esg funds, environmental social governance. So investors say esg, the g being governance, has become increasingly important to them when you look whats going on with governance of companiesou of silicon, going public with multiple shares, giving investors little say in how the company is run, it will be interesting to see how that plays out alongside these esg concerns and whether each individual side winds up caving based on fiduciary duty and so forth. That will be something to watch over the next few years. Yeah, and where that even fits in with esg priorities. Exactly. Governance versus Environmental Concerns leslie, thank you. Very interesting leslie picker. Still ahead the ecommerce war of words mpt dont miss exclusive interview ceo of etsy following his comment that amazon is, quote, taking bold steps to wipe out its competitors by supporting a New California Consumer Protection bill youre watching closing bell here on cnbc 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. 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. Expect anything different . The big events are back and xfinity is your home for the return of live sports. 47 minutes left of trading welcome back, everyone hurricane laura is gaining strength in the gulf of mexico, expected to make landfall on the texas and louisiana coast this evening. It was just upgraded to an extremely dangerous cat four storm. Brian sullivan has a look at the potential fallout for Energy Companies in the region. Brian, how big of a threat is this for u. S. Output. Well, its a big threat but also a big storm that map was terrifying, takes up about half the gulf of mexico lets get the latest on the oil and gas story. As you can imagine, im not breaking any news here every refinery in its path is shut down or shutting down 48 offline, 2. 5 Million Barrels of capacity that has been cut as well that will probably go up a lot of these companies, guys, are tightlipped about the refineries status. They dont want you no youve got to make calls, whatever it might be gasoline futures are lower, which is a little weird but ill get to the reasons in a second companies, exxonmobil shutting down at least two refineries, biggest refinery shut down, valero, shell, they are all there. That beaumont area lake charles, thats going to be the center of the storm. Kind of where the m in beaumont would be, thais the direct path. You can see there, thats the really hard hit area there is a few reason why gasoline is down right now one, gasoline inventories are higher than last year and can absorb some hit to production for a while. Number two, youve got refineries that are staying open only running at 80 capacity they can make up some of the slack, guys. Of course, demand will drop as people stay home because of the storms first, all the ports are closed, galveston, port arthur, et cetera, so all the ships are stuck. Check out this from marine. Com that is amazing. The dots, red, blue, green, those are ships. If you are not in port, you have scurried over to Corpus Christi or the coast of mexico because laura is coming right through. Hundreds or thousands of ships all running away i think that, kayla, and sara, is an in verse map of that storms path its incredible there. Brian, one interesting thing here normally when you have this type of dislocation in the energy market, you see images of people lining up to fill up their cars with gasoline around the block for miles and miles. Because people arent going anywhere, used to hunkering d n down is that a silver lining, they wouldnt be hit if they were trying to get somewhere with sky prices as energy goes offline. Thats true its not just driving but also jet fuel we forget 35 or so of all refined gasoline products is used for air travel. Air travel is onethird, if that, of what it was youve got all this excess refining capacity, inventories for oil and gasoline are pretty high to your point, were not driving certainly as much. In the next week, not a lot of people, except emergency crews and First Responders and cleanup crews are going to be doing a lot of driving in the next couple of days in those areas, kayla. You put that in perspective and its why were seeing commodity futures down but also some stocks down as well. The refineries have had a terrible year anyway by the way, 2020 has been a terrible year in every way yeah. I dont know how many people had a category 4 hurricane on their bingo card, brian. Well come back to you as the situation develops thanks for bringing that to us not surprising to hear that energy is the worst performing sector today the overall s p 500 setting another intraday record with tech continuing to lead the way. Joining us now with his Market Outlook is sebastian page, head of global multiasset at t. Rowe price. He manages target date strategies sebastian, just tell us first what you think the hurricane could be to the overall market clearly the Energy Sector is moving but it comes at a time when the overall economy, data starting to look better, coronavirus case counts starting to look better could this be a fly in that ointment i dont think it will be. It will Impact Energy directly, destroy some demand in the shortterm but youre essentially asking a broader question, which is stocks appear to be somewhat divorced from the real economy at the moment think of 2020 we are going to we can estimate earnings down about 23 , gdp down 8 , 20 million unemployed and stocks up 55 from the bottom. The key is, though, that stock anticipate future earnings and future conditions. So this is whats going on again, i dont think that the hurricane itself is a major event for the stock market im thinking more broadly that stocks are fairly valued at the moment. So which direction do you think they will go if they are fairly valued right now, do you think they still have room to go up, or do you think they are due for a pullback at this point stocks have room to continue to go up if you take 16 to 18 month horizon. Were asset allocators, so everything is relative we have to look at the opportunity stocks relative to bonds, for example when i say stocks are fairly valued, they have room to go up, probably not double digit. But relative to bonds, i look at the yield on the barclays global this morning its 90 basis points, nominal. So were thinking in relative terms. If we look at the earnings yield on stocks, which is very hard to estimate, but if we kind of move forward 2021, 2022, compare that to the bond yield, and we find that stock, despite reaching new highs, are not that expensive from that lens. How do you explain a day like today . Is that whats happening, people having this realization . You have netflix up 10 , facebook up 7 , the Software Names are flying over salesforce a lot of these companies are having huge moves off no news. It cant be a bunch of analysts playing catchup with price targets, whats going on today feels like a covid on kind of day. Think of it as the paranoid rally, the liquidity, the infusion of stimulus weve had stimulus if i look at the high range estimates, 24 trillion the size of the total global market, total stock market is 48 trillion so about half of the size of the total market cap out there that has created in part the rally in stocks, together with bringing rates down 150 basis points so today is a continuation of that paranoid rally, yif you will, people seek big tech platform, the big growers, the companies that are weathering the covid on environment quite well now, what were watching very closely in this environment is the potential for a rotation between those Growth Stocks and the value stocks well see if and when that happens. Weve been hearing it could happen for quite sometime, sebastien. Obviously today is not that day. We appreciate your thoughts, sebastien page with t. Rowe price. With 39 minutes before the closing bell, the dow is up marginally, a third of 1 , s p up about 1 . After the break, theres a new spac man in town, gary coen launching a blank eck chcompany. Is it wise to invest in this growing trend . In the s p 500,panies even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. I cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Rolls on trump economic adviser gary cohn teaming up with investor seeking 60 million for ipo blank acquisition company. The latest highprofile name to join in on this frenzy bill ackman, billy beane, cliff robbins, some big names. Draftkings and nikola, just a few companies brought to market via spac, foregoing traditional ipo. Mike santoli, traditional investors, is this a warning sign like the open rush in the 2000s or a chance to get in early on highgrowth companies its probably some of each. You obviously see the fact theres a market for these companies shows theres a willingness to believe, a little more speculative age to the investme menment environment rit now, doesnt go too far and take them in a reckless direction we just came out of this period where there were a lot of complaints about too Many Companies private zo long, Fast Growing Company evaluations, no access for a person in Public Markets. There is opportunity, hang out a shingle, get into a spac vehicle and see what deals can i sniff out over the next couple of years. You have to weigh one against the other. I do think its one of those things there is an element of a better mouse trap involved theres protections for investors within some of these structures its not as if youre giving cash over, no strings attached, in way to get out of your cost of course they have to put it to work in a business you have a chance to vote whether you want to participate then after. So i do think also the idea that private Companies Find it more efficient is probably both good and bad because they may be sort of implicitly paying something for that efficiency when they go this route as opposed to seeing what the market will give them in an ipo. Mike, i feel like they get some heat and they get some criticism for the whole blank check notion, come invest with me, im famous i have a good track record i promise well do something good that sort of buries the fact there is some opportunity here for investors to get in perhaps earlier than they would with those private Companies Staying Private for so long. Did you see there was another spac announced today, desktop metal, 3d Printing Industrial parts, going through a measure with trine, the blank check company. It has really famous investe, kleiner, ford, google, ventures, bill miller, they have seen tremendous demand of this is going to go public, mike, and offer investors a way, essentially, to get in on a company that does 3d printing for small parts. Its already being used with ford and bmw and other partnerships so theres some Exciting Technology here to talk about, even though it is an unconventional way of doing things and perhaps raises a lot of eyebrows. Not necessarily like private equity or Family Office that raised a bunch of money and going out to find a company. There are new opportunities. You can sort of say, have these anchor investors have an incentive to have this work, good track record of finding decent opportunities i do think you have to ask the question whether its become a little bit trendy for these private companies to go this route as opposed to an ipo and costs and benefits of that theres definitely Silicon Valley sense that we dont want to leave any slice for the wall street middleman, Investment Bankers that control this process or still do in many cases. Im not sure thats necessarily unequivocally the right thing to determine if this is the better way to go. Were heard from years from private mike, weve heard for years private equity firms have so much dry powder and things too highly valued and cant find enough Good Companies to invest in im wondering what the likelihood theres so many spacs and not enough highquality, low Value Companies for these spacs to invest in what are the requirements they spend investors money and not return it after a couple of years if they come up empty. I think thats one distinction between private equity, which, remember, is going to find a company that can sustain a lot of debt and therefore has cash flow already and likely can be resold along the way, pay down the debt and have the return be decent for private equity sponsor thats not an Early Stage Company or growth Phase Company where they are reinvesting its a little more hybrid of private equity and venture by the way, that means a lot of companies are going to be a lot of promise and no proof, and they are not going to work so i think thats where you can have a little bit of a different Hunting Ground between some of these spacs and private equity. Plus, who wants to do a zoom road show. Thats right. Mike, thank you well see you in just a moment time now to get a daily coronavirus update the u. S. Has now surpassed 180,000 deaths thats according to the latest nbc news tuews talley cases ticking up, but trending lower as a whole cdc saying people without symptoms may not need to be tested even if they have been exposed. Health experts are pushing back. However, saying that asymptomatic people do contribute to the spread here and testing them helps guide the targeted response. And moderna saying today its Coronavirus Vaccine showed promising results in the small early stage trial of elderly patients the vaccine was tested on 10 adults between the age of 56 and 0 70. Neutralizing antibodies and t chelsea, which was go tcells which was good news. Now an update with sue herera good to see you. Good to see you here is whats happening at this hour Justice Department wants department from new york, new jersey, michigan, states it said required Nursing Homes to admit covid19 patients erlt in the pandemic possibly leading to thousands of deaths. The information will be used in order to possibly start civil rights investigations. John bel edwards telling residents to evacuate now to avoid what forecasters are calling an unsurvivable storm surge as hurricane laura, a category 4 storm, comes ashore tonight. In tokyo, here is a new hightech Public Toilet with transparent walls to reassure perspective patrons they will not find a mess inside the glass, however, luckily turns opaque once the door is locked from the inside strange times. Sara, ill send it back to you. It did turn opaque, i thought. It did, thank god. Sue, thank you. Still ahead, the nasdaq surging to another record today. Facebook, alphabet, microsoft, they are all hitting new highs but should you ride the wave or take some profits here were going to ask investor dan niles for his long appear short list as we head to break, a quick check on bonds yields are higher again today. Weve seen this throughout the week higher stock prices and higher treasury yields as discussions focuses around jay powells speech at jackson hole tomorrow where hes likely expected to talk about higher levels of inflation, also dumping safe havens for riskier stocks. Well be right back. Traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. On wall street the dow giving up some of its gains, up 62 points, s p up 32 points, nasdaq up 176, up nearly 2 , the s p 500 and nasdaq on set for another record close up next to the foam footwear frenzy shares of croc up nearly 300 from their march lows. Well ask the mpycoans ceo whats behind that strength up next [sniffing] 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. Woi felt completely helpless. Hed than online. Ading. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome back dow up 78 points shares of crocs have been an under the radar winner during this pandemic soaring nearly 270 since the march lows, easily beating out nike, skechers as consumer turn to comfort during the stayathome era. Joining us now for an exclusive interview is the ceo, crocs ceo and president andrew rees. Andrew, thank you for joining us what is driving this boom in business my pleasure, happy to be here i think one of the things is exactly what you said, comfort three things i think were incredibly well positioned as a brand. The consumer is looking for comfort, value, easy on and off and looking for a shoe that can be fun and personalized. One of the fantastic thing we do is personalize using Little Things i stick in the shoes called jibbetts. One thing we did was reach out and support Frontline Health care workers we gave 680,000 mares of shoes, retail of 40 million for Frontline Health care workers. We had them come to the website to do that, so we captured email addresses we created a great deal with that we felt good about what it did and also the impact on the company. I think a lot of people can relate to the comfort thing. I havent taken off sweatpants since march. Value and practicality as far as fashion, andrew, but what happens when we do go back to normal, there is a vaccine around the corner and states push on the reopening front . Yeah, i think i dont think that by any means represents an end of our relevance. Weve really been rebuilding the brand relevance over a good number of years now with strong collaborations we do with other brands, marketing outreach to consumers. I think this has been a recent acceleration of a trajectory but we had an incredibly strong year last year and really putting Building Blocks in place in terms of Product Marketing and how we go to market and how we partner with our different wholesale partners and reach our consumers and putting Building Blocks in place for sometime i think this is a time that was really good for our brand and for everything that we stand for but i think there are lots of opportunities in the future and were very confident about the longterm future of crocs frankly on a global basis. We do more business outside the United States than we do inside the United States. Andrew, who do you see as the average crocs wearer in this day and age . Crocs have been around for a long time. At one point they were synonymous with mario vitali, the disgraced chef now so many options, a number of companies shouting at them on social media and in direct mail. How do you find that consumer and who is he or she in the year 2020 so its incredibly diverse, which is frankly one of the real strengths of the brand we sell to a lot of different people we sell to men, women, and kids and relatively balanced across those three populations. Were also demographically diverse. So some people its an aspiration purchase, its a great value. They can get a shoe for 45 that can last them a long time. Some people with enormous means, its just something they are attracted to its diverse i would say recently, weve really been tapping into very effectively to that teenager explorer we call it teenager explorer shes in high school, shes in college, shes very active on social mediaened a shes been very attracted to the brand. Shes attracted to the color, the personalization options we offer and thats been a big growth vehicle for us in the United States and across the world. Andrew, we have to talk about the collaborations ive seen some of them, they are insane like kfc, which sold out in an hour, the peeps. How do you pick these brands to partner with and artists to partner with how are you driving such strong interest i saw crocs on stocks x, the secondhand retailer that usually deals with jordans, hard to come by. You want back four or five years ago and you would not find a single pair on stock x you look today and youll find multiple pair. The power and collaborations is a diversity. You highlighted some of the diversity right there, everything from kfc to postmaloney to luke combs to a recent one that we just launched, which is a threeway, so its with us, with chinatown market and the grateful dead so thats sold out in frankly minutes on chinatown market site well be selling that shoe next week, in fact. Its the diversity and the variety of people we collaborate and the creative you just look at them, they are wildly creative, appropriate for the brands were collaborating with thats the testament, core classic clog, and its a blank canvas we can do many, many things with the blank canvas and the creative has been outstanding. If you zoom out on your chart, weve talked a lot about the recent boom. It seems like a wild ride for investors. Personal those early days, back to ipo, 2006, 2007, you have yet to reclaim that glory. How do you convince longterm investors who might be skeptical and lost money after sticking with the ipo that its not a fad and you can sustain the level of business that is probably our number one challenge as its exists today. If you look at the trajectory of the company and the trajectory of the stock since it ipod, its been through a couple of significant cycles were now on a very strong upward cycle and i personally believe this is really, really different to the historic cycles weve got the real fundamentals and foundation in place, clear product strategy, marketing strategy, strong distribution, very strong digital distribution during q2. Over 56 of our products were purchased digitally so either through our own ecommerce site or through large global marketplaces, ameazon, et ceter. Weve been building that direction strategies is definitely where the customer is going. I think we are very, very confident as a Management Team and a company that we can ten to build this brand, make it increasingly relevant for the longterm which will yield significant returns for investors. Andrew rees, thank you for joining us. My pleasure thank you for having me. Appreciate it ceo of crocs after the break, dibs Sporting Goods hits a home run and salesforce hits a record of its own ahead of the dow duteb inside the market zone dow up 47, 15 minutes left of trade 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. Coming to the green flag,g a way tracing 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. Expect anything different . The big events are back and xfinity is your home for the return of live sports. But inside. 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We are now in the closing bell market zone, commercialfree coverage of all the action going into the close cnbc market commentator mike santoli here as always to break down the trading day also ceo keith bliss here. Welcome, keith well kick it off with the Broader Market all averages rallying. On track for another record close, nasdaq having its best daily performance in two weeks, mike its led by software with 26 move higher right now. But not just sales force, netflix up 11. 5 , adobe up 8. 5 . Facebook up 8 this is one of those days where the winners are getting much larger. Exactly so its all the kind of anointed, acclaimed leaders of their respective businesses that are getting owned today. Theres definitely, as i said before, a little bit of a chase apparent in that part of the market s p outside of technology is red on the day that would include things like Communication Services, just not pure technology. So a little uneven but very, very difficult to call an end to the phase where people have an unending appetite for revaluing great businesses higher. Really, its interesting because as weve been talking about quite a bit, the sell side has been a little bit left in the dust here. They have had to find reasons to raise price targets and ratings on these companies because the market itself has carried them so high. Mike, interestingly about todays trade, stocks going up at the same time yields in the treasury market are hiltting levels they havent seen in the last two weeks or so economic getting better, stock market gains would start to crater a little bit. But todays trade doesnt really support that thesis. Why not . Not really. Yields have kind of held up here a little bit although below recent highs i think the bond market is very much in the sway of whatever jay powell has to say, broader mental from the fed, 0, 0, 0 on the short end of the curve for a very, very long period of time theres that anchor. I do think strength in the stock market sometimes will get a lot of selling in bonds but thats not going on right now durable goods, good upside surprise it works against weakness in consumer and labor Market Measures i think the market is willing to try and look through this soft patch if thats what were in in august to say in general we have a recovery dynamic in place. Yeah, durable goods surprisingly strong, really shows that manufacturing and factories are going to help us in this economy and recovery better than expected keith, youve been bullish, give you credit on that what are you doing right now. Im sticking with the theme i have a bullish bent, sticking to the thesis, rates being one, inflation being one of them. Im really curious to see what jay powell and everybody has to say in jackson hole. I think you stick with your knitting here. One troubling sign, you look at all this euphoria around nasdaq, starting to shift away from traditional faang stocks, software, cloudbased names, starting to take some of the load, but still its a pretty narrow rally, which is driving the Broader Markets. Take a look at russell 2000, its actually negative thats one of the things we really need to see strengthen and start to catch up with the other indexes, because that certainly signifies what investors are thinking about the longterm health of the u. S. Economy as opposed to just a very narrow slice of that economy, which is big tech. Well, speaking of big tech, much of it led by salesforce surging today, crushing earnings expectations and guidance. Ceo reflected on the quarter on mad money last night. This has been such a challenging time for so many of us we realize with 54,000 employees working at home, with a raging pandemic, with this economic crisis, social justice crisis, with this environmental crisis, we have two changes. We could stay and do what we were doing, or we could change, we could evolve, we could shift, and we did. While famously tweeted a pledge, quote, not to conduct any significant layoffs over the next 90 days, salesforce has reportedly notified some staff of job cuts. A salesforce spokesperson telling cnn in part reallocating resources to position the company for continued growth, this includes continuing to hire and redirecting some employees to fuel our strategic areas and eliminating some positions that no longer map to our Business Priorities mike, what does it tell you, though, when a company as big as salesforce with record earnings, stock surges 25 is also in the process of right sizing its business at a time like this it shows you nothing gold can stay apparently. I do think theres a hesitancy among leaders to get off that productivity treadmill they are looking for targeted restructures, certain parts of the business working better than others but yeah, the fact that you have a salesforce with Pretty Amazing top line growth, and they have these huge Market Opportunities and tweaking the edges on the cost side. On one hand discipline or this effort to really get margins up. Its never been that profitable a company on an actual accounting basis its all been about backlog and growth and market share. Just an awkward time for that announcement with the stock up 26 today ahead of its dow entry. Lets move onto dicks Sporting Goods, another big winner, one of the biggest on wall street after strong earnings. Berta coombs h Bertha Coombs has the details. Record sales and profits for dicks Sporting Goods. The company saying it was driven by 200 curb in ecommerce and curbside pickup. Ceo said the pandemic has made people focus on being healthier, high demand and less supplies meant less discounting and stronger margins that was driven by individual sports rather than school team gear and outdoor categories like kayaking, biking, and government dicks ceo said the trends will continue into the holidays, he thinks, because vendors are brag very cautious. They are making sure the market doesnt get flooded with products so that bodes well for sustaining margins not if youre looking for a bike, however. Tight supplies. Its impossible to get a bike bertha, thank you. Bertha coombs. Mike, interesting these companies are doing so well. They have had good runs despite worries on wall street that the lack of team sports and all the head winds on back to school and running out of stimulus would hurt these retailers. Yeah, a bit of a weird kind of upside dynamic thats happened in the last several months we had an economy very heavily skewed toward services and a retail world people saying about experiences. We got into this moment you couldnt partake of the Services Travel and other experiences off limits but people had cash from the stimulus and they bought stuff. Stuff includes cars, new and used, it includes Sporting Goods, it includes houses and appliances and all this other stuff. So its interesting how weve had this real run on physical consumer goods at a time when we couldnt do services it makes me wonder if we get out of this period if theres any pentup demand at all that you normally see after a recession or people are going to start to go out to eat and travel again right mike, a lot of things are things you buy every 10 years you dont get an appliance every year, what is laptops, if you want to go that far thats also been a big surge its interesting theres nothing particularly textbook about the path of this recession and the early recovery period, at least not yet. Despite some states slowly reopening, wall street remains bullish on major stayathome players. City initiated roku on buy on account growth Piper Sandler initiated cheg overweight primary beneficiary. Atlantic equities initiated shopify at overweight as ecommerce growth explodes that firm estimates shopify on track for 100 billion in gross merchandise volume this year all three stocks already up more than 100 since the market low in march so keith, have you thought the stayathome trade was over . It looks like it is here to stay, at least for now for how much longer, do you think . I think for a long time when you take a look at whats happening, even with some of the outbreaks of the pandemic start to the abate like sunbelt states starting to come in and certainly where i live in the northeast weve been at low points for a while what this sixmonth period has shown is that we can operate and function almost normally by staying at home, and therefore were going to utilize and Consumer Services that make our stayathome life easier and more comfortable roku was one of those. Being able to shop online with a variety of retailers, not just big boys like amazon and walmart. Thats where shopify comes into play youve got students. My wife is a School Teacher in our town shell be teaching at home at least until october 12th chegg, not only textbooks, they provide essential services for those students those are good places to keep going. Even if they keep going, i think it also shows they have blown past analyst price targets. They are playing catchup two minutes left to go mike, what are you seeing in internals as we head for another record. A little mixed, sara, we keep talking about mostly big cap tech new york stock exchange, more declining, both in the nasdaq and new york more stocks, individual tickers meaning down. Its not good breadth, invite more criticisms maybe its too narrow another picture of that. The main nasdaq 100 qqq index on the day. Its way up ahead of equal weighted average stock in s p 500 measured by rsp, slightly down in the day again, very lumpy performance. Take a look at the volatility index. This was down earlier below 22 its now popping seems as if the market has gotten jumpy here even if it is to the upside. Sometimes it does feed through to a higher level of volatility, people paying more for options and bracing for a little more choppiness, guys. We are certainly watching that with a minute to go before the clothes. Stocks steadily gained steam into the close, s p and nasdaq near the highs, hovering there for most of the afternoon session. Looks like there will be another record close for the s p 500 after notching several intraday trading records there, 36 s p stocks have hit new intraday records today. The nasdaq is also on track to close for a higher fifth straight day the dow is less than 1 away from going positive yeartodate, Communication Services and tech the best performers, energy and utilities are the worst. Theres the bell, sara send it over to you. Another strzok close for the market, fifth day in a row we have seen a positive close s p 500 at a new record high, nasdaq at a new record high. Welcome back, everyone, if you are just joining us to closing bell im sara eisen with Kayla Tausche in for wilfred frost with mike santoli as always cnbc commentator. Take a look at how we closed on wall street, dow up 84 points. Microsoft biggest winner home depot trading at a new alltime high. Exxon and walgreens, biggest losers s p up 1 , strong day for the s p to close at a new record high, its 18th of 2020 Communication Service is the big winner salesforce the stock of the day, up 26. 5 in the close. By far the biggest winner in the s p. Norwegian cruise the biggest loser. Nasdaq a new record high as well, having its best day in week, up 1 3 4 thanks to Technology Boom which fueled this market higher it was tech and software following the salesforce quarter that blew away expectations and that big move. You had names like service now jumping along for the ride netfl netflix. Facebook on the close. Just to show you how lopsided the russell 2000 closed lower on the day, down. 7 , financials, utilities, real estate and energy all getting hit etsy ceo accusing amazon of trying to wipe out competitors with a Consumer Protection bill. Why that could threaten Small Businesses. First to join us about the market, sara malik joins the conversation, head of Global Equity mike santoli, well turn it first to you on what was an incredible day for Technology Stocks which powered to new records purchase in fact, sara, acceleration to the upside and a lot of names already the biggest in the market and performed extremely well have you to ask the question if this is a little bit of excesses building up, people running hard for the same names, the public with the favorite in huge numbers, odds of winner when you bet on the favorite, go down thats the way it works in horse racing you just have to ask the question if the performance in the leading stocks is now starting to just get a little bit overdone that being said, the trend itself is in good shape. I dont think broadly speaking over the overall market youre seeing a ton of outright nuttiness going on but when you see facebook up 7 or 8 today. Its well above the street price targets on a consensus basis and you have to ask why. I think thats the market were in right now and going into powells speech tomorrow im not sure what incremental good news is going to be out there for the market keith, we are seeing on our screen that the dow is in 1 of going positive for 2020. Psychologically what would that do to the market, if anything . I think what youd see is retail traders jump back in if they havent already, as mike pointed out. There is some chasing happening in this marketplace. More importantly once you start to tick off technical levels, not om on technicals but reaching across alltime highs like the s p did recently, then you start to get some of the machines and al gos kick in with buying program, a cascading effect upward for the marketplace. There is some of this money still sloshing around the system that has to find a way to make some money and yield and return on this. Right now thats just u. S. Equities its still set up to be that way even though yields moved up a little bit, its not enough to take the stain out of the equity market and wont for some time i would stay the course. Were about to enter into seasonably a volatile period in september and october but i think you see the trend start to continue to play out as soon as we get into the election then maybe we take a pause in the end of october. Okay. Well talk about that in a minute sara, in terms of these record highs, i remember the expiration of the stimulus looming large. Remember that, that was going to have an impact on income and a big shock and see it in the data and the fact there is no relief package happening right now with the senate still on vacation, are you surprised to see this kind of price action given that backdrop i mean, were definitely not becoming complacent here, worried about stimulus kpiration, the election, the markets are not pricing in a democratic sweep, which could have implications for higher taxes and more regulations the tech sector trade is more crowded here were becoming more selective. But were definitely not exiting. You have positive backdrop of better Economic Data, positive data points on vaccine news. What were doing, while running technology, look for value elsewhere. For example dividend looking clean, get yield there then going outside of the u. S. Looking at value stocks in europe and around the world with weaker dollar you can find value elsewhere, too its definitely time to consolidate your Technology Bets and look to put your money elsewhere where you can find greater values. But sara, its hard to find a really Common Thread among the Economic Data weve seen of late yes, durable goods was double what the street had expected but manufacturing surveys have not been strong. We did see jobless claims tick back above 1 million if you had to describe the way the data looks and how much confidence in the market, how would you describe it . Were looking for a slower for longer recovery. Exactly that we dont see this as being a vshaped recovery anymore. Its going to be spotty. We could see spikes in the virus that cause slowdowns which do cause slower mobility around the nation thats great for technology stock, which is why were not exiting. Growth Companies Less levered to the economy do great in an environment like this. Our view is earnings dont reach precovid levels until 2022. The market from here, its going to be tough to go straight up like they have been doing. Once we start focusing on earnings and pricing in, really the market should be in a trading range through 2021. We are getting earnings now lets get to those numbers josh. Box reporting eps of 0. 18, street at 0. 12, up a beat 11 to 192. 3, analysts at 189. 6 million. Billings beat 9 to 188. 8 million. Guidance for q3 above estimates, 0. 13 to ptd 15. 193 to 195 million for the year they are razing expectations now looking between 0. 56 and 0. 60, revenue between 767 and 770 million dollars. I had a chance to catch up with ceo aaron levi telling exceeded revenue guidance, strong beats all around he tells us showing stability of his platform. Box did cross 100,000 customers in the quarter what reese saying, he says, is more momentum for Digital Transformation i did ask him, though, about revenue trends as well what i saw, mentioned a pop of 11 in q2. The companys q1 it was 13 mers a year a13 . A healthy pipeline but he says box is not immune to the broader reality of the economy. Strong demand, he tells us, from existing customers he is seeing softness in some segments so Small Business guys, back to you. Josh lipton. Josh, thank you. Despite softness in Small Business, very strong numbers, very strong share price reaction, up 14 here after hours. Box had basically done nothing over the last three months, a nice comeback from the march lows just another sign after salesforce that Enterprise Spending is in a good place, if youre providing these kind of Cloud Services that power the work from home trend. The fact that its been a laggard as you said, the fact this the best day i can ever remember for a cloudbased Enterprise Software company to have their results hit the market, you know, then you see that reflex reaction the fact youve got 25 move and 200 billion company today in crm is pretty stunning. Yeah, and up 13 in after hours for that specific stock, sara this enterprise trend, it continues. Does that give you reason to continue investing in that sp e space . We generally think these companies are benefiting from digitization the thing with Something Like box, it is a smaller cap company, there is a handful of companies that can break out in Software Space to mega companies. While they are very much benefiting from the work at home trend, can they get to the next level. I think at this point its unclear because of the competitive landscape. Well leave it there. Thank you for joining us keith bliss, saira malik, thank you both. Thank you. The red hot Housing Market helping Toll Brothers report strong Quarterly Results up next well ask luxury home builder ceo if he sees any sign of slow down amid uncertainty with the economy and jobs. Were back in just 90 seconds. 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 for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Luxury home builder Toll Brothers cap lizing on hot home marketseeing contracts up 26 for the Third Quarter, Third Quarter record Toll Brothers ceo doug yearley joins us in an exclusive interview. Doug, its great to have you here the numbers are incredible it follows what have been Strong National numbers weve reported in terms of home sales how would you characterize this demand environment versus whats normal yes, sara ive been doing this 30 years. This is about the best couple of months ive seen in my career, and thats highly unusual to see for a summer usually we sell most houses in february, march, and april so the market is really strong its taking advantage of very low rates. A sub3 rate versus 4 rate, just one point lower for our buyers you can afford for the same Monthly Payment a 900,000 house versus 800,000 house just four months ago when it was a 4 rate theres very limited supply on the resale markets were down to threemonth supply, 20year average is 5. 7 months really importantly, theres a tremendous nesting phenomenon going on right now people recognize they can work from home longterm. The house is more important than ever its their sanctuary they want to upgrade it, customize it with a home office, inlaw suite for their parents, indoor, Outdoor Living thats our business. As a luxury home builder, we sell upgrades, allow you to build your dream home. Our business is as good as weve seen it. Weve had a fantastic first three weeks of august and are really encouraged by our future. You keep saying its a luxury home builder, which is i guess, why doug youre relatively insulated by the fact we have 10 unemployment and so much widespread economic pain is it because youre targeting a Higher Income Group that youre not seeing that or feeling that . No. I think all the builders at all price ranges are having really strong sales right now theres a lot of people that are renting that can now move into a starter home for the same Monthly Payment because of these low Interest Rates but at our price point, which is a little bit higher, although we brought it down a bit, were doing what we call affordable luxury, were just seeing buyers that want to move up they think now is the time in the past you lived where your job required you to live now you can live where you want to live. Were seeing more and more people relocate to those areas of the country that they desire to live. They can still do their job. They are able to sell their home to move up to ours because the resale market is so strong they are able to take advantage of these tremendous rates. I cant overemphasize this nesting phenomenon that is going on where everybody wants a home. They want it to be customized. Were, again, seeing terrific results. It really is across the board in housing. Most of our buyers do have college degrees. That group in the country has a much lower Unemployment Rate and i think they feel much better about their job future than the country at large so thats certainly helping us to some extent but this strong Housing Market is really akroscross the board. It makes you wonder just how much activity is being pulled forward, doug, from years to come because of whats happening right now. It also makes you wonder whats going to happen when theres a vaccine. Are these trends going to reverse or is this permanent so it doesnt feel like pull forward. It feels like its sustainable remember, before the pandemic hit, so for our first quarter, which was november, december, and january, we were up 28 in sales. So we went into the pandemic with what was becoming a very strong Housing Market. And then, of course, we had a couple of months where things were pretty tricky and now back stronger than ever it doesnt feel like pull forward demand it also feels like rates will stay low for an extended period of time. As for when the pandemic thankfully will be in the history books and we wont be living it every day, i think i know for our company were going to be much more flexible with the opportunity to work remotely we will still, of course, have offices and require people to come in. It depends on their job. Occasionally or once a week, twice a week, once every two weeks, but i think there will be less travel, there will be less obligation or responsibility to go to your main office because were all proving we can get the job done remotely. Its a very efficient way to work so i think people are looking longer term when they think about the home as this sanctuary, as the most important place in the world, and they want to put more money into that home, customize it more, particularly with the low rates where they can afford to do that more without increasing the Monthly Payment. How much overall, doug, do you think that the huge injection of fiscal stimulus and the mortgage forbearance is distorting the picture in housing right now, if at all i think very little i think very little. I think a few months ago there was certainly concern about that what i see now with this Housing Market, how strong it is, i dont think that is having an impact on todays market if we went back to april, early may, we would have wondered if thats the case. Now were in late august and sales are still incredibly strong and its real again, its people who want to move up. They are not taking advantage of government stimulus. They want to improve the lives for their family they want homes that allow them to not just raise a family but also work from home, to think about when parents get older, you know, nobody wants to put their parents in a nursing home anymore. Were able to design new homes that have custom features that allow nor multigenerational suites theres many different phenomenons but i think its longer term and i think its solid. You mentioned on the conference call, you told analysts you have raised prices and plan to continue to do so. What do you have in mind in terms of price increases and is that in every region where you operate . Yeah, so we mentioned in most of our communities we have raised prices over the last few months thats a supply and demand equation weve had such great demand that weve been able to increase prices we know that lumber as one cost is up significantly. As an industry we are concerned about longterm labor shortages because there have been such great sales recently but im confident with the price increases weve seen to date, and what i hope are continued price increases if this market stays strong, we will be able to offset those anticipated cost increases. But we really evaluate each Community Every week we look at the sales and we make the decision as to how much we can raise price. For the last few months, those price increases have been pretty much almost always all the way across the board and pretty significant. The hottest market in the country right now is hottest market in the country is boise, idaho, with significant traffic increases coming out of california. Really. And right behind that id say we have reno, nevada, is pulling people out of the bay area of california atlanta, Northern Virginia really, people are chasing the sundown to florida so its hard to say theres one and only one, because we have so many very strong markets we have relocation traffic stronger than weve ever had because, again, people can now work they can live where they want to live and not where the job previously had required them to live. Thats causing a lot of crossmigration across state lines. Doug yearley, thanks so much for joining us really good color. It is my pleasure thank you very much. Etsy ceo crafting a fight with amazon. Why amazon support of a new Consumer Protection bill in california is, quote, an abuse of power market play aimed at ngut competitors listen to us on the go on the cnbc app well be right back. Tada did you know Liberty Mutual customizes your Car Insurance so you only pay for what you need . I should get a quote. Do it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. You say that customers make thelets 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 buy the new Samsung Galaxy note20 ultra 5g. Etsy engaging in a war of words with amazon in new blog post slamming the proposed Consumer Protection bill which would hold Online Marketplaces liable for defective products on the platform ceo Josh Silverman calling the move an abuse of market power play and amazon taking bold steps to wipe out its competitors. Silverman joins us now in cnbc exclusive interview for more josh, i know this is a big deal because you never speak out publicly against amazon. Explain why youre calling them out for backing this legislation. Yeah. Thanks for having me on. I think this is an important issue, important to everyone in america. This is a wolf in sheeps clothing designed to protect amazons market power and extend amys market power and dressed up to look like Consumer Protection here is whats going on. Consumers need to be protected if something goes wrong with a purchase theres a long history that says if you buy something from a retailer and something goes wrong, that retailer is strictly liable it also says if you buy something on a marketplace, the vendor on the marketplace is liable but the marketplace itself is not. If you buy something from a flea market, a landlord who owns the parking lot is not liable, its the person you bought it from at the flea market, right the question, and theres been a gap in recent law, what happens when a marketplace starts to look and act like a retailer we dont need california to pass a law on that because the california judiciary just settled that issue last week they said amazon looks like a duck and smells like a duck, so it acts like a retailer. It excerpts control, picks the inventory, stores the inventory in its warehouses. It packs and ships the inventory, puts it in an amazon box and delivers the box to your door in an amazon van. So amazon meets the standard of acting like a retailer and therefore it should be liable like a retailer. Amazon is turned around a bill in california to say every other online marketplace thats not acting like a retailer should be held strictly liable, so craigslist or ebay or etsy should have liability. This is going to have tremendous consequences for 3 million sellers on etsy and all sorts of Small Businesses around the country should amazon prevail in this fight. I just want to understand why amazon would be backing this, i guess, from your perspective, josh to me it seems like a bill that is antiamazon to protect. Aemtz has been fighting these bills for years, havent they, to protect consumers against liability for defective goods and blaming it on the third party sellers. Why all of a sudden are they backing it now they have its so cynical. They lost this court case because the court found they act like a retailer. They are now strictly liable in the cases where they act like a retailer the court didnt find they do it every time the court set a standard for what are the tripping points they gave guidance for other courts on when is a marketplace acting so much like a retailer that they should be held strictly liable and amazon would trip that wire most of the time. So amazon then flipped and said, well, this is an inconvenience for us, but it would be a crushing burden for Small Businesses, for our competitors, for people like craigslist or etsy they have backed a law saying since we have to do this because we act like a retailer, we want all Online Marketplaces to also be held liable even if they dont act like a retailer. The reason is this is so complex that a smaller place, a marketplace like etsy, which never touches the merchandise, which doesnt fulfill, doesnt pack and ship, simply cant comply so its really an anticompetitive act from amazon to consolidate their market power. Do you have a responsibility for quality control. Regulators would say if a marketplace cant police its own vendors, perhaps it has too many vendors orb itself is too big. What would you say to that argument products for sale on etsy are safe and vendors take great care to assure so and buyers. Everyone who sells on etsy has to comply with the law and is liable but that doesnt protect us from nuisance litigation. So if etsy were held strictly liable, we would be besieged by nuisance litigation. To litigate anything cost 50 to 100,000 in this country what we end up seeing is all these litigation cases that cost 50 to 100,000 at a time today to start a business on etsy costs 0. 20, so its incredibly cost effective. Were the easiest path for Small Businesses to get up and running. If etsy had to vet every single product from 3 million sellers and all 70 million items, it would simply be unworkable you might be right, we would have tons and tons of Small Businesses that would be put out of business. At a time when the Global Pandemic is happening and so many Small Businesses are struggling, thats the wrong answer this is an incredibly expensive solution to getting low value insurance for people vendors take great care. Thats not been the problem. The problem is about amazon trying to foist Unworkable Solutions on people who truly do act as marketplaces. Its a big deal because you are calling out amazon and also threatening for a lot of damage for Small Businesses josh, i remember when they were writing the orbit water for etsy in 2015 when amazon launched its handmade marketplace to compete with etsy. Here you are, youve seen this amazing boom especially over the past year in terms of the stock and the business how deep does this fight go . How long have you wanted to call out amazon for anticompetitive behavior i think the world really wants alternatives to amazon i think the world deserves alternatives to amazon in this Global Pandemic we see how buyers crave to support Small Businesses and Small Businesses need the opportunity to sell online so now more than ever, its really important that true marketplaces have an opportunity to compete with amazon the way we do that is by being a true marketplace we open our doors to all sellers and keep the cost of selling very, very low that gives buyers an opportunity to buy great, innovative high quality products at affordable prices and everybody wins, everybody but amazon this is really them trying to use Public Policies in their lobbying efforts to try to shut down competition thats not what America Needs right now, especially not Small Business. If it ends up passing are you going to do anything well take it to courts we think its in violation of federal law. I think it will be an embarrassment to California Legislature if it does pass because they will see an uprising from Small Businesses in their state they will see marketplaces start to tax california residents differently than others, and thats not good for anybody. So you know, i think and i hope that california will realize that this is not good policy and take a breath and figure out ways to protect consumers that also support Small Businesses and the economy. All right really important issue, josh thanks for joining us. Josh silverman, one that hes especially passionate about. We appreciate it kay kayla. Sarah breaking news on the stimulus negotiations. According to sources i just got off the phone with, republicans are in the process of now refining a new socalled skinny stimulus proposal that could be released among members of the Republican Party in congress as soon as this week according to two Senior Administration officials and three people briefed on the matter. The white house and gop leaders are now looking to propose a approval 500 billion aid package that would fund only the core programs where support has been bipartisan. That includes expanded Unemployment Benefits, which one Senior Administration official tells me could be proposed at 400 a week. That number has been moving in recent days. It would include a new authorization for ppp loans for Small Businesses it would include funding for schools, for coronavirus testing and for vaccines developed under operation warp speed despite the popularity of those programs that i just listed, each of the five sources i spoke with was doubtful the skinny package goes anywhere. Of course we heard the chief of staff mark meadows earlier today suggesting that stimulus negotiations could all be zeroing in at the end of september when a funding deadline for the government comes near that certainly could happen. But the exercise that republicans are looking to do here, sara, is essentially to secure some votes in the senate and challenge House Speaker nancy pelosi to take this smaller olive branch, reauthorize some of these programs pelosi has suggested republicans must meet her halfway at roughly 2 trillion and essentially challenging her to take this deal or try to see if she can pass Something Else in the next few weeks, sara. I guess whats missing, obviously theres a lot missing from that, the bare bones, the state and local government piece, which the republicans have not put forward Unemployment Benefits, though, you said 400 bump a week. Thats actually better, right, than the status quo. Right part of the reason that republican estimates earlier on this summer were so low was because they wanted a little bit of room to negotiate it also, sara, does not include another round of stimulus checks the republican view is that the Unemployment Benefits help people who are not working and the stimulus checks went to everybody. It was helicopter money that was ineffective and went to people who didnt need it of course democrats have been suggesting in some senses that people should be getting, you know, this recurring income until the pandemicis over. So eliminating those stimulus checks all together could also be controversial and not necessarily bipartisan but they are really trying to zero in on those programs where they want to challenge democrats to say we dare you not to fund these things where there has been broad public support. Right both parties have been on board with all those aspects kayla, we have breaking news from nba and Racial Justice impacting the Major Sports League kate rogers with the story kate. Hi, sara, cnbc confirmed the playoff team between miami bucs and Orlando Magic has been canceled the game was about to start, no players on the floor there were tweets League Officials huddled up outside locker rooms, a tense scene on social media reports are that players decided to formally boycott, players from the bucks, this over a shooting by a black man in wisconsin. Reaching out to other teams set to play tos if they are jeong this boycott part of whats unraveling here is a very tense scene in the nba bubble back to you. Major statement kate rogers, thank you. Up next, famed tech investor dan niles is back to tell us why hes betting draftkings will be part of one of the biggest trends in a decade and why hes betting against what he calls the mock for trade thats next. Welcome back time for cnbc news update with sue herera. Hi, sue. Hello, everyone here is whats happening this hour take a look at this. This is what it looks like in galveston tech texas as an enormous hurricane approaches the gulf coast hurricane laura is now a category 4 storm with winds up to 145 miles per hour. It is forecast to come ashore overnight along the gulf coast near texaslouisiana border. Forecasters are warning of an unsurvivable storm surge the cdc pressured by Trump Officials to change its quofd testing guidelines that was according to new york times. The new guidelines exclude people without symptoms even if they have recently been exposed to the virus the Administration Official overseeing the testing said politics were not involved in the change u. S. Officials from several agencies say theres no intelligence to suggest any Foreign Countries are trying to undermine mailin voting or that there is a coordinated effort to commit widespread fraud. That despite President Trumps claims that mailin voting wont be reliable. You are up to date ill send it back to you, kayla. Thats an Important Note to end on thank you, sue all three major averages rally, s p and nasdaq closing at record highs. For more lets bring in dan niles Founding Partner of alphaone capital partners. Dan, you say were in a bubble and youre looking for the pin that will pop it what do you think that pin could be the first part of that is im trying to enjoy riding the bubble while looking for the pin. So for us the Biggest Issue with the market, and it has been for a bit, is valuations i think tomorrow will be a very interesting thing to watch because i put out a tweet on this under my handle at dan niles, jerome speaking at jackson hole, how the fed with a framework around inflation, may let rates stay longer. In theory that should be great for stock market, very interesting to see if you look at markets in europe, for example, the pe ratio more in that 20 to 24 times range even though dividend yields are higher. They have they go tiff rates thats the situation thats one of the pins i am looking at is how the market responds to things like the Federal Reserve because thats really whats kept the party going is the fed continuing to pump money and continuing to keep Interest Rates low. You mentioned europe. One of the things today the Davos Economic Forum will be delayed until next summer. I know theres been a lot of groans an tiny violins on the delay of davos perhaps holding these large gatherings, big institutions are making the decision even four or five months fro now it wont be safe to do what does that tell us how prolonged this suppressed Economic Activity could last i think you bring up a great point because when youre talking about davos or i look at Colleges University of north carolina, they started classes, i think they have about 30,000 students. A week later they shut it down and its going all online. University of alabama, the same thing. We all know whats going on with the sports leagues as well so i think, you know, lets not forget, it normally takes 10 to 15 years to get a vaccine. Were shortening that to a year. To think that the world is normal, it doesnt make a lot of sense. So my take is we get back more a sense of normalcy, wait next year when everybody can get a vaccine, weve got some herd immunity, et cetera, thats when it will make more sense. For right now, as you pointed out, davos being canceled not a big deal but just a sign of the times and the fact theres a lot of risk. Dan and sara, i wanted to ask you about your shorts, the mach 4 trade. Malls, airlines, cruise lines, hotelse e hotels have they been punished enough more pain here valuations pop up with a lot of companies mach 4, a lot have gone up from the bottom, we tried to get short rallying and putting them back on. Now related to real estate in malls, real estate for offices those are the areas we really dont like things related to travel, thats stuff we really dont like weve also added a little to that in terms of names huawei ive spoken about before obviously the elections, a lot of ramped up rhetoric on china the other space, quite honestly, consumer discretionary, which i think investors should Pay Attention to dont forget, we were getting 600 extra a week for people unemployed thats gone away we dont know what the new number is. Maybe its 300. We dont know yet. That stopped in july i think with that propping up a lot of buying, thats going to cause some issues, i think, as we get into the back half of the year because the number is definitely going down. Those are sort of the three segments i think valuations when the overall market is this high, valuations for everything, even the beat up sectors go up. The other thing, a lot of bankruptcy risk in those areas, a lot of retailers filing for bankruptcy already theres probably more to come as things continue to get canceled as kayla mentioned, like davos, et cetera. Theres going to be more things like that. I think you just need to be very careful when youre involved with things like that. Hey, dan, quickly on the stimulus front, we just reported a few minutes ago that republicans are going to propose a very small package essentially challenging democrats to take it up, which is unlikely to happen. If theres not a stimulus, the fierce standoff continues, do you think well see bankruptcy in sectors, hotels, airlines, cruises you mentioned . Yeah, i think well see more bankruptcy weve already seen some, obviously, this year thats going to accelerate unfortunately the thing with politicians, as i think weve all discovered, until the stock market, you know, starts to collapse, they dont do anything its a lot of posturing and talking. Right now with the market continuing to grind its way higher, the politicians dont have any impetus to do anything right now. I think eventually, you think, will happen. If it doesnt, the market is going to force their hand. Yeah, i mean thisis one of the reasons why im trying to every day, im looking at my portfolio going, okay, i own amazon but its up 80 . Do i want to own as much or i own gaming stocks they are up 40 . Should i be scaling some of these things back. The market keeps levitating. Today more stocks down than up on s p 500 while hitting a new record thats not a great sign when it continues to have that narrow type of frame. When there continues to be a back stock from the Federal Reserve, hard to see how the market can go down or present the urgency washington needs dan, for now well leave it there. Dan niles from alphaone capital. Thank you. Stocks continue to hit record highs up next, mike santoli will look why equity flows are lagging and whether that could be a warning sign for investors introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Another record close for s p 500 and the nasdaq lets go back to mike santoli. A good time to be looking at sentiment. What do you say . Its one of the main things you want to keep an eye on when the market has been rolling for a while and when could be unbalanced about it. Overconfidence does contribute to the end of rallies. This is the spread between bulls and bears, a Weekly Survey we look at a lot, investors intelligence, advisers, these are professionals that dont let rallies go unplayed. Here you see were pretty much in the upper reaches of this range. People are very, very lopsided on the bullish side of the vote rit now. This is fascinating. January 2018 remains the moment of maximum happiness for this entire post financial crisis bull run were pretty much as high as weve been since then. Thats an input that says be careful, maybe people have bought into this market. Take a look, though, at what real money is doing of this is from barclays. The world stock market, the blue line here, basically all equity markets in the world trending up here this is cumulative equity fund flows. So what you see is you actually see a decline. Net outflow recently in flows to equity funds actually a longterm decline as well this shows people are not necessarily throwing money real head long way at this market now you dont necessarily have to see these people go all in but its interesting to see real money indicators and Hedge Fund Positioning dont yet match some of the really bullish short term trading metrics we do look at, guys. All right thank you, mike. Up next, much more on this developing story surrounding the nba as the Milwaukee Bucks boycott todays game and as we head to break, check out will m williamssonoma moving lower, and reporting a 46 jump in digital revenue. The stock was up 34 heading out the report, down currently ab6 after hours well be right back. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. The Milwaukee Bucks not taking the floor for their playoff game with the Orlando Magic. Cnbc jabari young is on the floor. The Milwaukee Bucks are the home team an hour away from milwaukee where jacob lake was shot in the back by police a couple days ago. How did this come about and do you expect other nba teams not in this vicinity to go along with this . It came about by players, obviously, being fed up. I think its one thing to sit back and listen to them and see the tweets and hear the emotional speech from doctors and say, man, its come time its enough talking. It comes time for action today youre seeing that action. Today youre seeing what the nba and twitter is talking about today they are using their platform to the maximum ability saying they are not going to play its one thing to do it on an nbc tv game and see images of players walking out supposed to play the everyone ganing games,. Thats true power. I think that it was a collaboration. I cant foresee they did this without going and looking at the nba and making sure that the nba knew they would do it and making sure the owners, there is always an owner player relationship thats wellregarded, you know, compared to other sports i think the nba is the first league to cancel, postpone their season when the pandemic hit and the first league to come back, one of the first leagues to come back and really show fight for social injustice and the first league that will say were not doing this were done and at least for these two games today and the game this evening. A powerful statement its powerful because were talking about it and powerful if it brings upon awareness and True Solutions to the issues that black people face in america. Jabari, any response yet from the league officially or from any of the team owners you know, not that i know of. Listen, the response is what you see. The nba, i dont think they are caught off guard by this i dont think they got caught off guard by this. This is adam silver trying to put this together, they had that tight relationship i would not imagine this goes and breaks them at this point. The nba is by their players and allowed the jersey with the sayings on the back to bring awareness to the individual that killed and shot bee reonna tayl. There is a lot of reporting that a lot of the other games tonight will be cancelled, as well, standing in protest along with the Milwaukee Bucks well leave it there thanks for jumping on the phone. Keep us posted on any developments up next, well look ahead to tomorrows session jackson hole conference of central bankers going virtual. The key things investors will be watching thats next. Dont miss Jared Kushner Senior Advisor to the president on squawk box tomorrow closing bell will be right back im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. The annual jackson hole Virtual Conference this week that kicks off tomorrow. Fed officials will host we wellknown central bankers around the world to face key issues the topic is navigating the decade ahead implications for Monetary Policy jay powell set to speak tomorrow morning just after 9 00 a. M. Eastern and guys, theres been a lot previewed about this speech and that he is set to make a fundamental shift in the feds policies and thinking around inflation, that theyre set to tolerate higher inflation, let it run a little hot, which just ultimately results, mike, in easier policy for a lot longer is it factored in the market could come as a surprise ill miss the walk, the elk, all the tradition, but what about powells speech. The fake mountain backdrop and the rest of it i do think a lot of it is factored in. This is, remember, a long running study of their overall frame work and people have gotten clues about it. It will under score the fact the fed is sensitive to not being premature in moving off a super easy policy before you get to Something Like full employment so whether inflation gets near 2 , thats not going to be the trigger. They want to avoid what p happed with the slow improvement over the labor market many years where they spooked markets but making a move in a tightening direction before perhaps investors are ready for it and we got the full employment. Yeah, thats at 9 10 eastern tomorrow but we should be talking about navigating the next year ahead before we think what happens the rest of the decade sarah, thank you for having me mike, great to have you. That does it for us. Fast money starts now. Im melissa lee and this is fast money. Tonight on fast, a once in a decade opportunity with apples biggest bull is calling the stock and will press him on the call straight ahead plus a streaming buy. What sent shares of Roku Streaming high today and the story in the gulf coast as hurricane laura bears down how the storm is