supposed to be historically bad. they say september is supposed to be not great either if august was so good, should we expect anything to change as we turn the page in the calendar? >> no. i don't think so you would think by now it would be taking into account the volatility an election brings and basically without having any disrespect for the candidate, nobody cares about you're on site with the fed. you'll lose a lot of money if inflation hits money supply for those of you remember your economics in high school up 25%. where does that money go where does my money go where does everybody on this money's panel go into equities where i get pricing power against inflation. i think it is coming into companies that have solid balance sheets distributing their capital. that's not going to change now or september maybe if you're lucky, a therapeutic or vaccine somewhere in the next three to four or five months which will prove out it was worth waiting in the weeds and equities until this pandemic is put to the side and we wait for covid 20 >> kevin is right. the greatest catalyst has been the fed and the fed. fed officials continue to drive up stock prices by committing to keep interest rates close to zero for a long time they are fueling the melt up in stock prices the fed is not going anywhere. why should the stock market stop going up >> i agree kevin, to your point, we also have to think about the fiscal policy this is propping up the market what we're seeing is the liquidity of the market has been induced and that's what we're seeing this is not a typical market we would not expect this in a typical frame work but with it added to the market this is what we're getting. >> i see you're not adding any equity exposure here at all. do you not believe in the narrative we're trying to build here on the show today if you take the fed, you take the tex surge will seems to be ongoing here the belief that you'll have therapeutics or a vaccine and as a wall street journal points out today, you have mom and pop falling in love with stocks again. >> it's a very complicated position to be in, scott adding equity exposure here coming into the fall, i think is a challenging predicament to place yourself in. understand that i am positioned extensively long we are now experiencing the fifth consecutive positive month for equities to kevin's point earlier, what is also experiencing five con sec tifr months higher is the price of silver. i think as you look forward into the fall here, i do think you're going to experience a modest correction at some point for equities i think last week on the show, that correction will be very modest you go down 10% and you're nowhere near the 3,000 level we didn't see 2,000 at any point at 2016. i don't think you see 2500 for the s&p as we move forward over the next three years i think the federal reserve put that is underneath the market is supportive for equities. it's warranted to give potential of a modest correction >> let me ask you this why is the move in silver a sign to you that you could get a correction in stocks >> i think it's indicative of uncomfortableness with the potential inflation out look that kevin talked about at the beginning of the show. both gold and silver a lot of alternative assets have been rallying alongside of the nasdaq moving higher and the higher growth stocks moving higher i think that's indicating to us that there is budding volatility underneath the market. i think that's the first place i would look if you're looking right now to protect portfolios from a risk management stand point. look at the cheapest of volatility. >> we have seen consumer confidence decay we'll see deterioration as the july 31st expanded unemployment benefits we'll see that in the data that comes out in august. the consumer needs to be rallying this economy forward. if you think about why you're investing in some of these cyclicals and we talked about this give and take on the value rotation at this juncture unless you see that continued consumer spend and that trajectory then we're going to lose some steam in connec equities we have been cautioning over the last couple of months. anticipating that september could be rocky we're coming into election season as well it's this nexus of events that will create some discomfort. the only push back is the stock market is voting repeatedly that none of that matters nothing matters. except for the fed >> it doesn't in long term i'm not calling for a 20% correction this policy announcement was not surprising to anybody who listened to any of the comments being testilegraphed by foupowel the fed remains at our backs. i think this economic that da that comes out with matter to the market >> what about this run in tech we had it for weeks and weeks. it hasn't lasted all that long you look at the gapes in august alone. what we said was the best august for stocks in 30 years is anything going to change in termgs of where you want to be putting your money in the month or two ahead >> nothing has changed not surprising because of the splits we have seen. the volumes are exploding right now. 400% of a full day's volume but you've got four times as many shares that's not particularly strange but it keeps those stocks top of mind think how much money people spend to get that top of mind for my product it's not so easy these stocks will continue to perform. that could change over the two-month period in the short term, i don't think it does. i'll focus on the fact that a lot of these secondary shutdowns in florida, in texas, in arizona have now reopened. we're likely to see spending data from these areas in particular based on our alternative data we're seeing people moving around both walking and driving and new york is just driving and maybe that's to the shore, scott. maybe it's out to the hamptons but they're not walking. they're not walking around the city at all. that's what it takes to get a lot of that volume of trade up in those businesses in new york. that is happening in florida, in arizona, in texas to a certain extent, california any of that f-cat sort of stuff. i'm looking for the slow down that dropped in the beginning of june into july to start hockey sticking back up again if that does, i think it's another reason to stay in some of these names as schools come back online. >> that would drive demand for cyclical stocks. if you'll get a bounce back like john is suggesting you might, you get a rise in interest rates a bit that stimulate a bank trade. that's one of the calls today from mike wilson overmat morgan stanley. they are coming out of the wood work saying fina ining financiae place you want to be >> i've been out of the cyclicals or the banks and the money center banks for one specific reason. i've continued to reduce my position i don't agree on this call at all. they have not marked to market all the realize they own and the regional banks they own the strip malls going to zero. we don't know what the cap rates are going to be on aaa office towers in new york and boston. also bank assets not yet. you haven't missed a thing staying out of those every week we get another call now by the banks it's where money goes to die it's utter misery with interest rates staying at zero. that's not place to put capital. i suffer with it scott i suffer with it you have to admit that you can't get 80 people in an elevator anymore any time soon. maybe in a couple of years 15% of the the staff in my operating companies, sometimes 20, do not want to go back to work they want me to pay for higher speed internet and give them equipment. they have tasted what it's like to work at home. they like it and they're not going back i'm cutting back on my office space by 15% who owns this misery the banks. avoid with extreme prejudice in my opinion >> i don't know if our panel agrees with you on that. kevin says stay away all together it doesn't sound like his thesis meshes with your view on where we are going >> in case of banks, i have exposure through the financial sector through paypal with their venmo and square with their cash app. i've got exposure in jpmorgan and key bank but i don't have much those four are mainly just transaction vehicles i'm not necessarily disagreeing with kevin about that. i think it's going to be hard for these banks. not impossible but hard for them to post up numbers that get them nirp near where they were back in january, scott. i wouldn't hard core -- basically look for entries on on downgrades >> we saw what was happening we continue to reduce our financial exposure and we've increased our tech exposure. that's been our move i guess i'm agreeing with kevin and john that financials are not the place you want to be right now in this market >> shannon, you want to take the other side >> i did, actually i think if you're look at inflation expectations rising and growth expectations rising, you get an incremental steepening of the yield curve, there's going to be a rush back into financials and into banks i know that i've talked about non-bank financials over the last couple of years as far as being a good place to be if we really see a move towards yield curve steepening and we should based on what the fed said last week that they would let inflation run hot and we're talking about this consumer spending rebirth and improvement economic growth, i think if you believe that economic growth will improve into 2021 and you're not buying financials, i think that doesn't make a whole lot of sense to me from a positioning stand point. if you believe that then you should see yield curve steepening it doesn't have to be much it just has to be incremental and show there's something there. >> that sort of messes with mike wilson thesis. maybe a lot ultimately pass in congress we believe financials remain the best way to play it. >> that would be a benefit to the financials and full disclosure, i'm low on jpmorgan, morgan stanley and sach's. the reasoning behind my longs there has nothing to do with the expectation that the yield curve will steepen it has to do with the significant up tick and the positive environment as it relates to trading activity. that's why i'm really there. you have the potential for significant regulatory risk for the financial sector on the other side of the election i'm not sure we priced that in just yet >> if you have regulatory risk on the other siefds tde of the election, positive trading is not enough to lift the bank stocks from here in market way, is it? >> i disagree with that and the performance shows it from where the entry was three or four months ago it has been the strong trading that has been -- >> i mean, you want to look at any stock where it was four months ago versus today. >> sorry, scott. i'm talking over you there's a lot of stocks in the same place or lower than they were four months ago i've talken those positions on the expectation and communicated that on the show that you would have strong revenue from trading. that's why i have that exposure. i think the diversification is very important in a portfolio. >> kevin, you started this with don't touch these things that's where money goes to die what about joe's argument that you should be invested in banks, at least to some extent. >> i think that's what makes the market joe and i disagree on a lagree things but i've never agreed on his bank calls you can talk about economic recovery owning actual companies that are participate and have pricing power that don't have a market to market loan problem on their books in the case of regionals. judge you have lots of people that come on and talk about lease ups in residential being being fantastic versus what's going on sometimes it's better to do nothing. they teach you that in business school do nothing in the case of banks, avoid do nothing. >> all right joe is doing something tell me why you sold best buy. >> i just feel as though the good news has been priced in the work if home environment how many new computers are we going to buy how many more equipment as it relates to the environment of sitting at home and working. i thought the response to the quarter as poor in terms of performance. i talked on the show about being concerned going into the quarter that the expectation was very high obviously it was i'll ring the register and take my profit. >> cnx resources you sell that too? >> i did, scott. those were natural gas plays i tried to get a bit of revival. i am di asappointed we did not e more of a stronger performance from the natural gas names i took the capital raised from those three names i just told you i sold and went back into old dominion freight line. i'm very bullish on the transports it's a mid cap not afraid to buy high and sell higher i got exposure to the vxx. i strongly believe going into the fall that adding volatility into the portfolio from the long positioning is the right move to make from a risk management stand point. >> i know you're not talking about expecting a large correction or whatever word you used to describe what are. i can't remember you did use 10%. no new positions you sold best buy which is one of the better performing retailers and you added the vxx. that tells me that you're protecting your portfolio at this point rather than trying to be opportunistic to the plus side >> yeah. i think maybe if i had not done some of the trades i did in the prior months that put me in a good position, maybe i'd be looking at this differently and i would be like others chasing that performance i think there's a lot of people as we push into the fall that are out there changing the performance. i brought up silver before i just want to emphasize that point. people try to find risk management in alternative assets whether it's a modest correction of 3 to 5% or maybe a little stronger, when it ultimately comes the place that the atm is presented is in the equity's market themselves. i think there is some as a rule ner bl -- vulnerability here as we move into the fall to shake the free out and restart the positive momentum on the other side of that >> it's a great stop it ran we pulled back a little. we took some of the profits off the table. it sales data to traders investment we really like s&p global. we took some profit off the table. >> it's been good having you on the program. see you soon >> thank you much. >> let's get to rahel. she has a sector check >> taking the top spot it's become the worst performer. the s&p record high in august as did six of sectors the other five do remain a good distance they had a strong performance in august up 9% that's helped the sector come about 10% of new high. the big drivers in that sector this month, sounds a little familiar we see names like fedex and ups and the airlines tech largely driven by those megacaps like apple and microsoft but it's interesting to take a look at what's unfolding in fin tech. visa and mastercard are up more than 10% in august sending them both to awe tile highs for the first time since the pandemic. notably their gains this month out paced newer rivals like paypal that's a reversal of the trend we have seen for most of the year where the younger payment service companies have dominated and off the heels of that spirited conversation a few moments ago it's really interesting to see all of these big moves in the non-financials payment space with how week it's been this year >> give me the laggards again. industrial, real estate, you till tills >> utility, energy usually one of the worst performers >> kevin, which one is most likely to have a good september, do you think >> of the losers none of them you have to say, to me, i've been taking money out of utiliti utilities, taking money out of money center banks for a reason. i think the other sectors that look interesting to me, technology is driving america 2.0. it's allowing us to run an economy on a digitized basis i have the stay there. health care really intrigues me. they did not decline as quickly as everybody thought and all of this money falling out of helicopter is one way or another getting to them. it's the consumer space, the tech space which i'm over weighting and i don't see it changing >> we'll take a quick break. we have an exclusive interview with marc lasry. he's the chairman and ceo of avenue capital it's his first interview since the team's walk out over the weekend sparked a movement all across the sports landscape. otantoistht ms at we're back right after this. give you my world ♪ ♪ how can i, when you won't take it from me ♪ ♪ you can go your own way ♪ ♪ go your own way your wireless. your rules. only with xfinity mobile. we are back. let's get to sue who has the headlines for us >> i do. thank you, scott here is what's happening at this hour, every one. confirmed covid-19 cases in the u.s. have now topped six million. that's under a quarter of all cases worldwide. the u.s. added a million new cases in just three weeks. you can go to cnbc.com to check out the latest on u.s. hot spots. the migrant rescue ship financed by the artist banksy needed help itself it had to off load people onto other boats after taking on so many migrants it could no longer move it's criticizing european authorities for taking six hours to respond to the ship's distress call. vrmts th in berlin, pair of pandas are celebrating their biwir biry with a frozen cake they tip the scales at more than 61 pounds. everybody go aww you're up to date. that's the news update >> it's one of those things you do when you see pandas >> absolutely. i'm trying to bring happiness into the news cycle. >> thank you the nba playoffs resumed over the weekend following the walk out by league players to protest the police shooting of jacob blake in kenosha, wisconsin. bucks started the action by refusing to take the floor for their playoff game a move that sparked similar action across the entire sports world. ma marc lasry joinings us it's his first interview on the subject. good to see you again. >> my pleasure great to talk do you >> can you give me an idea of how this went down behind the scenes >> i think what ended up happening is george hill felt he shouldn't play mainly because what happened was in our state the rest of players followed suit that's how it came about afterwards we set up a call with the wisconsin attorney general and the lieutenant governor for players to speak about what they were thinking and how to bring about change >> when did you first find out there were thoughts among your team not to take the floor that day? >> i think i found out a few minutes before everybody else did. i think the players met and talked in the locker room and the game was supposed to start i think i got call about a minute or two before other people found out found out pretty much the same time as everybody else did >> what were your thoughts when you did hear that? >> i was surprised at the end of the day, i'm supportive of what the players were doing i felt it's their right. they have a voice and they should be able to utilize that voice. >> do you think that all of the other owners in the league, i'm sure you have some perspective on this. i don't know if there was a league wide owners call you may have been on from the owners you spoke to individually. owners come from all stripes politically and otherwise. was everybody support iive of te move not only from the bucks but league wide? >> everybody i spoke to was supporti supportive i think at the end of the day, i think adam did a phenomenal job in dealing with what was going on and talking to the players and talking to the owners. i think everybody was in agreement. >> i'm wonder how you think about -- do you feel as any part of the walk out or boycott i don't know what the right word is to use. protest doesn't seem to be the right word do you think that any of that was directed at the owners themselves for not maybe taking some of the concerns of the players seriously enough >> i don't think so. i think how it started was really with a few players and the team deciding because everybody happened in wisconsin that they felt an obligation to be able to do something and say something. i don't think it has anything to do with the owners. >> can you shed any light on how close the season was to being completely over? >> from where i was, i don't think it -- i think it was a risk i don't know what the risk was, how large it was i wasn't in meetings with the players. i think you had large group of players who wanted to continue they wanted to feel they could still be heard i think that's what's been happening. i think by not playing it becomes a little more difficult. >> can you shed any light on the role that michael jordan was said to play as a liasion between the players and the owners >> yeah, i think michael jordan because of who he is he has a tremendous amount of respect with the players and with the owners. i think he's probablily uniquely qualified out of efb verybody t speak to players because he was one and speak to the owners. i think michael had great advice for all of us which was to listen an pay attention to what people were saying i think michael was instrumental in getting a lot of this done. >> he encouraged the players to use the platform that they had to continue to play but also for the owners to be understanding about what the players message was trying to be in. >> i think so. i think at the end of the day, michael was able to speak to every one and everybody was able to listen to michael because of who he is. >> i want to ask you about some of the reaction which has been, you know, somewhat widespread. jared kushner, the president's son-in-law was on cnbc last thursday morning i want you to listen to what his reaction was when asked by andrew about that. let's hear your reaction on the other side of that >> sure. >> i think that the nba players are very fortunate that they have the financial position where they are able to take a night off from work without having to have the consequences to themselves financially. they have the luxury which is great. i think with the nba there's a will the of activism and i think that they put a will the of slogans out but i think what we need to do is turn that from slogans and signals to actual action that's going to solve the problem. >> what's your response to that, mark >> it's great that jared has an opinion and it's nice. it's easily solved he's in a position of power where he could solve a lot of these issues i think ultimately if he wants the issues solved, he should do it he knows what the issues are i think it could besoev solved. >> the president said i think what they're doing to the nba, in particular, will destroy basketball what's your reaction to that >> i would disagree with that. i don't think it will at all at the end of the day people love watching basketball people are excited that the playoffs are back. people understand that people have an opinion and they want to be heard >> do you worry you could lose some fans as a result of some of these actions? >> i think you could lose some fans i think you'll gain some fans. i think we'll see what ends up happening. at the end of the day we should all respect if somebody has something to say >> the position you hold within the league and your role in professional sports, how we in society see the role of the professional athlete changing. the calls for -- athletes are not going to listen to those calls anymore that say stay in your lane. shut up and dribble, if you will they view their lanes as a two lane road at minimum yes they may be basketball players in one light but they have these powerful platforms and they are thoughtful people beyond run the right an execute the right play on the court. they want their voices to be heard because they feel like they have an opportunity perhaps like never before to execute change sgli sgli >> i think they have every right. i think lebron james has 74 million instagram followers. i have 400 i think people want to listen to lebron james at the end of the day they will listen to players. they will want to see what they do and players want to voice their opinions they have every right to at work people voice their opinions to me everybody who i work with has an opinion. at the end of the day, it's a bit ludicrous to say to people, look, i only want you doing one thing and one thing only i respect everybody's right to be able to say and think what they want to do. >> we know there was a time and it wasn't that long ago and perhaps some still feel this way in the ownership ranks that the players have a role to play and maybe all owners aren't comfortable with players speaking out in the manner they are. do you feel like that has changed now and it's changed for good >> it has changed. i think society is changing. i think there's been a lot of changes that have been going on. i think that's just going to become the new normal. >> yeah, we know that and lastly, before lit you i let yoo we know many arenas will be used as polling places. that's one of the central ideas that the players had and the leagues and the owners are listening. yours will as well i do believe you own the arena in milwaukee will it be a polling place >> yes we do own it we have to get approvals to end up having that happen. my understanding is that happened over the last 24, 48 hours. happy to say that it will be a polling station. >> it's good to see the game back definitely good to see the game back your guys looking pretty good position we'll see what happens i appreciate your coming be inik and talking to us about this important issue. thank you. >> my pleasure take care. coming up, buffet's berkshire betting big time on japan. i'll give you a look at the s&p sectors. take a look now. s&p is negative by a couple. wh what a great month it's been in august in 30 years the half is back after this. ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. 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. stocks by the slice from fidelity. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. wo we're back >>. >> warren buffet said his company has established a 5% in trading. let's talk about this with todd rosenbloom head of etf unusual fund research. the largest japan etf, that's ewj has significant exposure to all five of these companies that buffet is investing in but out flows have been happening for a while. >> we think it will. it's a nice tell the japanese market has been undervalued. we've seen dxj a billion dollar of out flows. some of this money is going into the beta builders. it's a cheaper version of those two products we do think that there's an undervalued opportunity in some of these japanese etfs you get the benefits of diversification. >> jay, you have got a very interesting etf. it's doing terrific this year. the row botsices and artifici-4t are japanese stocks. japan remains robotics >> i think that's right. >> there's this large but stagnant it's pocket of opportunities they have been very much at the cutting edge withering towels at our hoe it wills -- hotels soon ta are at the fore front of of what see in the market today >> thanks very much. etf edge at 1:00 p.m we'll be discussing etfs like robotics huge successes as well as problems ahead for esg it's not smooth sailing. a bit of push back on that major front. scott, back to you >> we'll be there. thaupg very much coming up, jon is following unusual action in the options market unusual activity is coming up with his trades. first, i'll show you the dow 30 heat map six are in the green the rest are in the red on a down day on this final tdi y aust.ng we're back after this. shares of tractor supply have rallied 57% year to date. bullish option traders are seeing more gains ahead and this week stocks modestly higher today what do you see now? >> well, scott, tennessee based tractor supply tsco, seeing strong activity in these weekly calls that expire this coming friday going into labor day holiday. they're buying the 155 with the stock at about 149 they bought those aggressively in the morning bought about 6,000 of those. paid 50% two different batches. i bought the 150 strike and sold some higher strikes against it that's my first trade. second one acm this is an infrastructure play little bit longer time frame december, in other words, christmas 45s, scott that's the strike price they are buying here. they were paying about a 1.75 for those. they traded over 10,000. that's a million share equivalent i had to follow those as well. that's trade i'll probably be in several months thank you. more trades ahead on the half. as we go to break a check on some of the stocks hitting all time highs we're back in two minutes. we know business keeps moving. and however we connect, whether it's over the phone, online, or in your office, we're here to listen and provide solutions that help you run your business better. because the decisions you make have far reaching implications. and a relationship with a corporate bank like pnc can provide just what you need. as one of the nation's largest banks, pnc brings customized insights and a local approach. to make informed choices now and in the future. they've really stood the test of time. much like these majestic rocky mountains. which must be named after the... that would be rocky the flying squirrel, mr. gecko sir. obviously! ahh come on bullwinkle, they're named after... our first president george rockington! that doesn't even make any sense... mr... uhh... winkle. geico. over 75 years of savings and service. ♪ mr... uhh... winkle. ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. . it's time now for our futures outlook. copper is up 6% as global reopening has investors bullish on that. for more on that, let's bring in scott nations of nations indexes. good to see you, scott where is this heading? >> it's going to continue higher copper is at its highest level in about six months. it's back to $30 a pound we didn't know how much production out of chile would be impacted and both of those are driving it above $3 a pound. the same things that are driving the parabolic move in lumber are driving copper i want it to be long but i don't want to buy the top. i would be a buyer in fact, i would order in to pay $3 a pound in a december contract my target to spend would be $37.50 i always trade these with a stop, $2.85. we're going to watch this really closely because copper is a really big contract, and at those prices we are risking $3500 to make $350 >> thanks. final trades are next. ♪ ♪ [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive. find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. i'm a verizon engineer, and i'm part of the team building the most powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles and in new york city. and it's rolling out in cities around the country. with massive capacity, it's like an eight lane highway compared to a two lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on. this is 5g built right. only on verizon. it is time now for final trades mr. wonderful, you're up first what do you got for me >> crowdstrike i think the focus on the election will make internet security para moumount. a good hold for two or three quarters >> how about you >> sysco if you want to make a trade in a more diversified way, this is a good way to do that. >> speaking of the good doctor, jon najarian, what do you got? >> amd this one is exploding through the roof and it's not because of a stock split. i see huge upside activity in the calls. i bought those before the show >> what do you got for me today? >> i bought nasdaq >> thanks, everybody, for watching "the exchange" starts now. thank you, scott hi, everybody, here's what's ahead. stocks are on pace for their best august in decades, so payback is coming, right but one major investor says there is no real alternative to this market for investors. are we setting up for a surprise in september consumers are on the hunt for webcams more than ever the ceo of logitech says stocks are on a tear. the race to keep up

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