This second half rally continue . Then a stimulus stalemate the latest from washington as both pelosi and mnuchin talk covid relief. And later its been one of the biggest winners of the pandemic, why peloton is getting a new street high price target over at jpmorgan its actually not a bad place to start right there, guys, because for the second day in a row, david, we have had some analysts raising targets even on names that they maintain at neutral, today its b of a which yesterday kept apple at a neutral, they upped their target acknowledging moment tim today they do the same thing with tesla, this Equity Funding will fulfill growth and their price objective goes to 500 plus yeah. Listen, every day brings more things that for me are reminiscent of the late 90s its hard to avoid it. I made some comparisons yesterday, many High Quality Companies of course are getting the fuel this time as opposed to what was a broader spectrum of companies perhaps at much higher multiples, many of which did not have great business models, but its hard not to when you see analysts twisting and turning and raising price targets. By the way, theyve been right, just the same way that henry blogett was right on his 400 target in 1996 or 8 on amazon, just the same way that many of the analysts were right in that period as well didnt make it any crazier. Mike, what are the latest numbers on tesla i think its trading at 1200 times earnings and 72 times sales. I think those are the numbers. Tesla is pretty go ahead. I was going to say tess will is a pretty much its own species in that respect at least in the current environment. A lot of people have made the comparison tesla to qualcomm back then which is the one stock to seize on that represents and embodies the momentum of this massive new market back then would be cell phones and the stock markets look similar although qualcomm crazier ultimately at the highs even though market cap level it was not. It went into the s p at 25, 30 billion dollar market cap. This market is tacking on massive chunks of market value across the board and, carl, you mentioned about the price target action look, analysts sit there and say, okay, if this is what the market is willing to pay for, you know, future users for Revenue Growth, for whatever, its not my place he is necessarily to say the overall market is priced wrong i look at what the Comparable Companies are valued at so im going to follow them higher. Obviously that chase represents something i guess of an overshoot phase that we are probably entering or have entered at this point. Even the overall market, the nasdaq 100 was contained at or below 20 times forward earnings for five years coming into this phase, its jumped in a hurry to 30 the s p 500 was contained at a ceiling of 18 times forward earnings its now at 23. The market is basically saying you have this early cycle economic recovery dynamic at the same time that you have kind of late cycle risk appetites and public excitement for stocks, its all feeding into higher valuations also at a time when at least right now people are willing to bet you are not going to get the policy missteps you got after 2009 with slow responses and sovereign debt crisis and debt ceiling showdown and taper tantrum. If you put all of that together i think you have people saying, fine, i will take t i will pay what the market is quoted for right now and thats the makings of some kind of an overshoot ultimately. Yeah, although its hard to get a taper tantrum when a quarter of the s p is five names and they are all benefitting from the same tech trends weve been talking about for months. David, at the same time we are seeing some very wellknown bulls, tom lee is a good example today who remains constructive on what he calls epicenter stocks, travel, leisure, industrials, but today acknowledges the number of new highs is declining even as the s p goes up, the vix back to 25 is something that is reminiscent, a clue at least of what we saw back in 2,000. He is not changing his view but this morning he does say its something to keep an eye on. Yeah, he think a lot of people are keeping an eye on it, at the same time if you are a Portfolio Manager who didnt own apple or amazon or netflix or tesla or peloton or zoom or i mean, we can keep going for a while here, guys, or paypal or teladoc, you know, you are trailing and trailing big and always the question becomes by the way, tom lee does a lot of good stats on this stuff, you know, what do you need to buy to try to catch up or are you comfortable telling your investor base, hey, listen, i wasnt willing to pay those kinds of multiples and, therefore, my performance has lagged its a difficult position to be in but the risk certainly, mike, would seem to be seem to be getting greater given these higher multiples at the same time the simple trade was just to follow the liquidity trade, follow the fed and get into these keends of assets clearly over these last four or five months. Right there is no doubt about t there is no doubt about it that when prices go up risk goes up and forward returns go down. We can explain why the market is willing to pay these valuations for the greatest companies in the world that lead the nasdaq right now based on where Corporate Bonds are trading, based on their stability of cash flows and all these other things, but that doesnt mean that it translates into over the next 10 and 20 years they are going to be the outstanding performers or their value for great superior returns over that time so thats the trade off you obviously got. Im looking ata lot of the shorter term stuff im sure that also tom lee and other folks who have gotten this right are looking at which is this rush to buy further shortterm upside bets in the biggest and fastest moving stocks in the Options Market so just in very simple terms, if you want to buy upside exposure for a 5 gain in a stock youre probably paying 3 to 4 times what you would pay for protection against a 5 decline. That should not be that kind of mismatch and shows you that the public is stampeding in the apples and teslas of the world in this direction. It cant last forever. You want to call it an overheat, the makings of a blow off, whatever it is, it can go on a long time because its not connected to anything like the adp number that came out today thats going to derail that process in itself. Yep, adp did disappoint up 428,000, we were looking for 1. 2 million, david, although the chatter this morning obviously is that adp has basically stopped becoming a good tell on what the jobs number may say on the following friday because of subsequent misses in var i didnt say directions. To Michael Point about risk protection, a lot of chatter not specifically about the vix but the way the vix relates to the election and overall election risk, which bloomberg today says is the most expensive risk event in history as were beginning to see various scenarios spun out, david, where, for example, the president wins the night of november 3rd on votes that are counted at the ballot, but then biden comes along a few days later theoretically and wins if you count mailin baltimore slowly those are the kinds of things that investors will be asked to process in the coming nine weeks. Yeah, frank luntz on squawk box this morning the pollster making that point as well that that scenario is possible given that it is believed that more democratic voters will use vote by mail than Republican Voters and to your point, carl, that would be a very difficult situation for the country one would imagine. And there are a lot of scenarios you can imagine at this point that would be somewhat difficult. Mike, i have no idea how the stock market will react to an election that is sort of that hangs in the balance we know the last one was extraordinarily close, it could come down to a couple of states and frankly a few thousand sand votes, its always possible, given it was 71,000 votes and three states last time that swung the election to President Trump in terms of the Electoral College despite 3 million or so votes more for his opponent in the overall vote totals. Yeah. I dont know. I will defer to you for history as a guide in any way if its possible perhaps the 2000 election, although unfortunately it would seem the vitriol even though 20 years later is far higher than it was then. Yeah, although at that point you were working with unprecedented levels to that data vitriol, i would argue, and polarization yes. And if you look back on that period its actually sort of interesting. You were already in the opening months of a bad bear market for stocks once we had that hung election for a while and as we look back on that phase i dont think anybody points to the disputed election as a result as decisive in how the market behaved or even how the economy did after that phase one point, though, carl, on this kind of bulge in demand for protection against volatility around the election, weve been pointing out this for a while, the actual market has been very calm, its been in this steady uptrend, you would not expect to see that much of a premium to be placed on volatility protection in october its obviously around the election but it also leads you to ask is the market now basically prehedged against that the fact that everyone is flinching against this possibility is probably all else being equal better than going into this blind and thinking everything is going to be fine i dont think its as easy as saying the market is pricing in turmoil, therefore, well get turmoil. Right thats an excellent point. Maybe were building a lot of that in early as you said. Meanwhile, as it pertains to stimulus we heard from the treasury secretary yesterday saying hes ready to go back and resume negotiations with the speaker over aid for related to covid. Eamon javers has more on that this morning. The treasury secretary was on capitol hill yesterday, he was asked about this idea that a lot of people in our area have been discussing, this a vshaped recovery, what kind of a letter would you suggest . The president yesterday suggested this is a super v recovery, steep drop down an sharp rebound. Treasury secretary mnuchin, though, wouldnt go all the way to super v here is what he said the president , the entire administration thinks there is more work to be done lets not get lost on different letters of the alphabet. Lets move forward on a bipartisan basis on areas that we can agree upon because there are clearly parts of the economy that need more work. So the treasury secretary there saying that the economy needs more stimulus, urging congress to get behind the president s effort to at least do something the administration has been pushing this sort of skinnier proposal rather than the broader effort that nancy pelosi and the democrats want after that hearing mnuchin and pelosi did have a phone call last night nancy pelosi putting out a release saying the call was 36 minutes long but expressing real skepticism about the administrations approach from her perspective. She raised the question of whether the administration is taking this seriously enough in effect and whether they are willing to invest the kind of money that she thinks is needed here to break the log jam and to get this economy moving again. So some real differences remain but they did have that 36minute call last night were told so that is some indication that talks are continuing, guys back over to you all right eamon, i imagine we will talk about relatively soon. Eamon javers in washington we will take a quick break a lot of news to get to on this wednesday before the labor day weekend. We will get to macys earnings there is an upgrade this morning of zillow group, price target ene ntuen montvidia and peloton. Wh wcoin ia me when the world gets complicated, a lot goes through your mind. How long will this last . Am i prepared for this . Are we prepared for this . With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to taxsmart Investment Strategies designed to help you keep more of what youve earned so youll know youre doing what you can for your family and your future. Thats the clarity you get with fidelity wealth management. For your family and your future. 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. 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. Welcome back i did want to update our viewers not too often we see an unsolicited or socalled hostile offer. We do have one this morning involving a company that i know fairly well, altese u. S. A. Announcing its presented an offer to cogico. Its a fairly large operator of Cable Systems in canada but also has a presence in the United States as well this morning altice in partnership with Rodgers Communications one of the larger canadian cable and Telecommunications Companies has made an allcash offer to acquire this company for a price of 106 canadian and 53 cents. Here is a look at altice we want to keep an eye on this Canadian Company for what would be not owned already by rodgers one set of their shares and 134. 22 per share for each subordinate share. All of this means a 30 or so premium for the company. Its an Interesting Company in that it has a control shareholder that only owns 10 of the economics but has the controlling votes because of super voting shares. In this case altice u. S. A. Is paying a premium for those shows that including 800 million canadian, 612 million to the audette family for their ownership interests and that would include 100 of the multiple owning shares a huge premium over 500 for the control stake, 30 for all public shareholders is what altice in combination with rodgers is offering here then theyre going to split the company if they were to actually be successful in actually getting it altice would take 1. 1 million u. S. Subs for something called Atlantic Broadband which is a subsidiary of cogeco and rodgers would take the remainder even with some tax consequences apparently they feel it would be a very good deal over all about 7. 8 billion u. S. Is what this unsolicited bid is currently worth. About 3. 6 billion us of that would be altices responsibility, the remainder would be rogers we will keep an eye on all of these shares i dont know if weve seen cogeco and how theyre trading this morning not often we see unsolicited you have a controlled shareholder with not that large an economic stake but the voting shares, apparently part of a family some of which are involved in the business, others of which are not involved in the business and so its almost reminiscent in a way of way back when one of my favorite breaking stories when Rupert Murdoch made the offer for dow jones given the huge possibility of enormous profits that he was offering them for that. Theres a look at all the stocks we will see how cogeco trades. The price of 106. 53, carl and mike, for the public shareholders there, much larger for the familycontrolled voting shares over to you. Thats fascinating. I was on the desk with you that day that you broke the dow jones news, that brings back some memories yeah. More on that later, david we will take a quick break and get to macys and some of their e com numbers. Stock up 7 premarket. Guess reinstated the dividend, stocks up almost 18 back in a minute who is usaa made for . Its made for this guy a veteran who honorably served and its made for her shes serving now we made it for all branches and all ranks whether they served one tour or made a career of it. We also made usaa for military spouses and their kids usaa is easy to work with and can save you money on auto, home and renters insurance. Become a member today. Get an insurance quote at usaa. Com quote usaa. What youre made of were made for at morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Last week it was Goldman Sachs upped its target on peloton to 96, today jpmorgan does it better at 105 talking about some delivery wait times for bikes that you have to see to believe we will get more on that in a moment stock is up 9 announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. Getting some clarity and more specifics on those job cuts at ford. Lets get to phil lebeau this morning. Take a look at shares of ford, the company has just sent this letter to employees basically saying that it will be offering early retirement to those employees who qualify and were talking about white collar salary workers here in the United States. The goal, eliminating 1,400 jobs and in this letter they basically say, look, if we can get to 1,400 jobs through voluntary layoffs or early retirement offers we should say, great, if not, then they will look at involuntary layoffs. That would be 1,400 jobs as a point of reference they make it clear that the goal here is to get to 10 ebit margins in north america and they are not there yet despite the fact they announced a restructuring, 11 billion restructuring last year, a couple years ago, that still hasnt paid off. They are still in the process of trying to get there despite cutting 7,000 salary jobs, but now they are going to eliminate another 1,400 here in the u. S. Guys, back to you. All right, phil its hard to turn every conversation about autos, phil, in tesla, but i did notice this morning that t