Transcripts For CNBC Squawk Box 20240712

Weve seen the dow and triple gains. S p in positive territory too. Down 22 points, s p futures are off by four. Yesterday was a good day for the markets. You had the nasdaq wed been watching closely was a big outperformer gain of 293 points the first day out of the last four both the nasdaq and s p have been in positive territory. Those three days before that give you something to worry about . Futures had been higher. Down a lot but come off the highs in the session looking at the treasury market where the 10year stands right now. Just below 0. 7 . Oil prices which really fluctuated and sold off sharply. This morning are down again. Wti off 1. 5 andrew thanks, becky a couple big stories to talk about. The senate set to vote on that slimmed down relief bill today talks between the white house and House Democrats and a report that President Trump may step in with more executive actions to try and fill the gap if something doesnt get done joe . There are other places in the world too. We dont talk as much recently about the ecb and stuff. We are doing so much here, what more do we need to talk about. The ecb will hold a policy meeting today. An announcement expected at 7 45 eastern. No major change is expected. Some say there could be tweaks to the guidance. New staff projections of things. Well see whether we hea anything about inflation, which after that interview yesterday and everything that the fed has said in recent weeks, i dont know do you thinks it weird, we have to worry about inflation and deflation. Trying to figure that out not too hot, not too cold. If we are really worried about 5 perts or 10 , i dont know andrew, you love the worry that was red meetiat for you its either horrible hyper inflation. It is a double tail risk at this point, has anyone heard 5 or 10 inflation i would say the big question you know who you know who that would bring back in the market your favorite. The bond vigilantes. Yeah. I think the big question and the reason we might start paying more attention to the ecb and other places around the globe is what happens with inflation or deflation and what happens because so much will be a currency play, right it is the dollar had a little res pit and this morning we got oil down again. Oil has to have something to do. Do input costs matter at all or would this be a Currency Debasement story look at whats happening with food prices. Those have increased you have places can you see that just in the Grocery Store . Used to be hording. I got a lot of stuff left. Do you need anything no. Im good actually a bunch of frozen ground beef my freezer is packed with crap i dont want to eat it i can get fresh ground beef down the road it is only good about six months you better eat it thats crap im eating it. Ive got a couple of friends that will eat it even if it is seven months yeah, your dogs thats right. This morning, bytedance is talking with the u. S. Government about possible solutions that may allow it to retain ownership and satisfying regulators in china and the United States. Good luck with that. Saying that possibly includes handing over data control of tiktok data to a u. S. Tech company. Its unclear if the administration would be willing to go along with that. Like i said, good luck with that trying to satisfy both United States and chinese legislatures. The data of not just the customers and the algorithm that makes it so valuable if that gets handed over, if you dont hand it over, what are you really handing over to begin with there are so many questions that even the buyers and sellers dont know the answers to at this point do you want to can i are you going to be able to read this next thing whats that the manhattan the travales of new york city i have views about it. The number of empty apartment rentals in manhattan nearly tripled from last year as many new yorkers fled new york city prices have collapsed. A new report finding there are more than 15,000 empty rentals up from 5,600 a year ago the largest number ever reported since data has been reported im still on new york. Im still on new york city yes, these numbers are bad there is no way it spin them any other way. Two questions, post labor day, lets go out two or three months from now and what do those numbers look like. I think it will be a multiyear rebuild. I think, i hope people will want to return to the big city. Thats my take and im sticking to it. Maybe ill put my money where my mouth is and buy more real estate in the city because i think it is a good investment. Thats what i was going to ask. Too big to fail. Youve got the deal book let me say this im not selling anything in new york all right thats a statement i think you need to double down in a big way and deploy some of that dry powder. You are long new york. Lets go, man. Im long new york i often look at real estate websites as sort of a hobby or i dont know what im doing. The prices havent actually come down nearly as much as you think. I want to see what happens over the next six months to a year. Well see. I think the next six months are probably key from people ive spoken to say, prices havent come down but there havent been a lot of sales yet. Everybody is in this wait and see. It is a game of chicken right now. Would to hurt to put in a call to barbara. She comes on the show a lot and say, you seen anything unbelievable why would that hurt . You are looking through the zillow stuff my people know im in the market if there is an opportunity, they know where to call it is all good oh, my god. Those guys on bravo are watching for you . I bet they are ive got other people ive got other people. You are cool. Weve had those guys on too. Got the sister channel plug in top exec from a company that provides testing kits to thousands of new York City Public School students over the next couple of months. First check out this mornings biggest winners and losers lets see what happens will be a long session today not sure which way tech is headed you are watching squawk box on cnbc 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. A new partnership to test students providing thousands of testing kits to new york city students talking about how your test works. This is an athome kit but not the same as, say, a pregnancy kit you can do at home youll have the results back in 28 to 48 hours thats right. The test is what the cdc would refer to as the covid test referred to as increased level of specificity, which is important when fighting this pandemic it is not an antigen test or similar to a pregnancy test. Getting into it the differences and methods and a lot of the confusion in the marketplace you are correct, offering a couple of different modalities and we can mail a kit to someones home they can selfcollect and now it is a simple, shallow nasal swap. Then mail that back and we process it at one of our key locations and return results in 24 hours it is important to note we are doing that within 24 hours there has been a lot of press out there including labs not keeping up with demand and the turn around times. As long as we get an order that is complete and get the information we need. There are some with errors or misinformation, thats about 5 of the time. Every sample that hits our door will be returned within 24 hours. I dont know how you are doing that when you are mailing results back it seems like it would take a big slow down just to mail things you are right the clock starts when we receive the sample we are using the fedex oneday shipping the moment it hits our laboratory is 24 hours how we do that is no small feat. We are a testing lab founded by engineers. Not necessarily pfrp hds we have under approaches to mesh learni Machine Learning ai we have pivoted our resources early on and it has been an overhaul of the entire lab we are hiring hundreds of people we have 12 mobil Office Buildings in our parking lot we are running seven days a week, 24 hours a day, three shifts no small feat. But we believe turn around time is the most important. When that starts when you receive it and it is 24 to 48 hours when you receive it, you are talking 72 hours when someone gets the test back three days is not all that useful we agree with you we are steadfast to be 24 hours. 24 hours from delivery, which is 48 hours. 48 hours from when the test is administered. That is correct. We have two locations. One in houston and one outside of los angeles the local customers can courier samples over the same day. We are serving a lot of the locations in los angeles or in texas and houston. If you can doif that sample over, that cuts out the shipping we are trying to serve the United States, so we have to take into account fedex will be delivering samples to us that makes sense if you are in texas or los angeles nearby, you can have those results delivered, particularly talking about a School System but you won big contracts with new york city and miami dade, that seems like it will be pushing things what is the cost for these tests . We havent disclosed the cost of some of our transactions. The average selling price, it depends what we are doing. Athome testing, facility testing, providing a kit there are differences in our product but in the 65 to 100 range depending on what we are providing. This is the pcr, i dont want to get it confused with the antiagain testing there are all of these tests that look like 5 tests. You are in the 70 to 100 range. Are your tests any better . Especially with a threeday turn around thats a good question. Thank you for bringing it up when you look at asymptomatic or presymptomatic, they wouldnt even qualify for the antigen test that only serves a small portion of customers we are trying to serve. To qualify, you have to have symptoms between one and seven days thats a small sub set of people that need testing. We think about back to work and back to school the deal with new york city, which we are incredibly proud about. The New York Hospital services and the Mayors Office have been phenomenal the back to work and back to school all by the antigen test i think your test sounds much, much better. The idea that you can pick people up asymptomatic is fantastic. You could be testing everybody every day for 15 while you are waiting three days to hear back on yours a quick turn around time and yes, having a better test to pick things up but seems like it is part of a broader package if you are really trying to get the schools reopened andback in th work force, you need those responses within 24 hours, not 72 we agree. There is no magic bullet or one test that will solve our problem here there is no one lab or company here i think there is a roll or place for testing. You want to really limit your false positives and false negatives. You tell somebody they dont have it and early on and they do that can be significant spreader of the virus with wish it could be faster going along with an antigen test appreciate your time and explanation on this. We look forward to seeing how this goes as this really picks up thank you for your time andrew. Coming up, well introduce you to a nonprofit trying to end the race gap before we do that. Take a look at shares of kansas southern earn. Theyve rejected a 20 billion take over saying the bid undervalued the company. That stock off a little over 1 right now. Well return with more in a moment i like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Hire pay and Better Benefits big draws for jobs blacks and latinos make up a tiny fraction. A report on a new nonprofit trying to change that. Working in tech wasnt on his radar in high school it was a new concept. Through allstar code, i was able to open my eyes to the power tech had allstar code aims to get black and latino young men interested in tech by teaching them Computer Science. I found it super empowering to take something from concept to a technically executed project. Showing blacks and latinos make up less than 15 of consumer and Technology Managers providing access and exposure and skills at the tech sector is important. The executive director of allstar code which went virtual this summer with 152 students. Mentoring is part of its mission. We need to be consumers and creators having some coding skills is like being dressed for success one of the few black ceos in the country, says this is like an on ramp for so many careers that can make you better as a lawyer or physician or medical researcher you name it, you can be better if youve taken some Computer Science if youve learned to code at 21, hes a Google Software engineer. It is not something companies should be like opting into because of a political trend a company should feel a sentence of responsibility to bridge the gap. Coding academies for girls were already well establishes when allstar code was established but she wanted to fill a void for young black men and fulfill her fathers legacy. Her father was the first black man to build a Million Dollar company in the u. S just hearing about coding makes me anxious here is my question, we have blacks and latinos become great coders, how do you get to the c suite . How do you help where there is not a enough reputation. Just becoming a coder is not going to get you there all about access. Julian did three internships at google before landing his job there. For startups, it takes access to capital. The founders of startups, only 1 are black that have the money that have helped them found their company. The key there is access to cap call and knowing who to get capital from and who to get sought out to be able to provide. It is a long haul. For jobs like a software developer, you are talking incomes that are Median Incomes of six figures, more than triple what the Median Income is for all occupations in the u. S it is bridging that wage and income gap and creating people who will be able to provide access to capital who want to do a startup. Coding can be done. It can be done it can be done. You were reading about it, my eyes go like that. It can be done and it is necessary to do it it might be like, if you start young, you might feel more comfortable with it. Maybe it is that. I will tell you, joe, some of our colleagues that do coding, they range in age. When you see what they are able to do around the stories you are able to put out and the discussions you are having youd be surprised coding goes around to make sure that really sin syncs on the website so it is my fault very good. We have a programming note, dont miss cnbcs inclusion and action forum today to examine how Business Leaders can take immediate and concrete actions and create sustainable positions featuring conversations with some of these folks here, from ibm and more join us today. Register at cnbc events. Com inclusion becky. Thank you, joe, when we come back, lagardes becoming leaders. Some stocks you might want to consider first, take a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. You know your kid doesnt step around puddles. And you know cheap leaky diapers are an amateur move. You need luvs prolevel protection. Luvs. Parent like a pro. This is the yes, a new way to shop thats completely tailored to you, with hundreds of your favorite fashion brands. Tell us what you love and what you dont. The more you yes and no, the more we get you. We will build a shoppable feed thats so you. No two feeds are alike. This is shopping made genius. Download the app and shop in a whole new way. Welcome back among the stories, shares of yum china dropped in the first day of trading the Company Raised 2. 2 million in secondary listing palantier a far cry from the funding rally five years ago they held a Virtual Event yesterday. And former National Security officer has been named to board of directors for amazon. Will bring National Security and Cyber Security to amazons 11person board. The tech giant remains locked in a battle with microsoft over the jedi contract. Looking at futures, positive day in the markets this morning, things have reversed you have watched futures higher. Triple gains for the nasdaq. The dow indicated down s p futures down 114 and s p down 51 points time for a check on what is working in the markets or what is not pointing out former laggards are leaders. Value and defensive stocks took the lead for more on all of that, Asset Management good morning to you. Lets talk about what is working in the market that druckenmiller says is a ragingmania. Lets start there. Do you agree whats going on here good morning, andrew. I think honestly, if you look beneath the surface since the march lows, it is a rational market those sectors are where people are spending money it is technology, Home Improvement, online retail, it is more rational with that said, looking to those thats what i think is happening. Ill ask you one more question, yes, the stocks of people who have moved their money in terms of the amazon and walmarts and valuations have gone through the roof. The questions i would ask is are those sustainable money and market share if you believe the market is discounting or even looking at 12 months, 18 months out if you believe that there is some form of a vaccine or something coming, you have to hope people arent spending that same kind of money at home depot, right there is a rational in the recovery on the march lows i would 100 agree we have gone a bit too far into that theme. What weve been seeing is some profit taking in some of those names. Right sizing and sector and style allocation positioned for this covid reality we are living in and the recovery well continue to experience over the next year or two. We have a lot of interesting catalysts coming up over the next two or three months that would be much more of an upside surprise for styles like values and sectors and financials than the leaders who have worked so far. It makes sense but it is about a better balance and some of those l laggards you mentioned three things coming up. What should we be looking for . First of all, we have the fed meeting next week. The fed of jackson hole really emphasized how they are changing their intolerance of inflation there is a big question mark whether theyll act to dully generate higher inflation. Should you get some upside in surprise, more guidance, qe, that would be more a surpirise for value than growth. I would highlight the fiscal growth sector that would be more damaging to some of the leaders, so far we mentioned a lot of Consumer Discretionary themes there the last thing is really, of course, the election coming up that is something where we could hear more noise in a theme between tensions between the u. S. And china theyve been one of the top leaders of this. Taking profit there and migrating in another region like europe which led over the past week if you would do something this morning, what would it be so two things all about how investors came into this. It is a good gut check given the unevenness, our portfolios are perhaps a little too tilted we are thinking about trying to bring that into a better balance with europe, value and sectors we believe in for the long run for financials if you came into this still on the sidelines and still have about a trillion of cash on the sidelines, that is a buying opportunity. We believe in technology and u. S. Equities for the long run there is a lot to do it depends on how you are positioned into this thank you for the insight talk to you soon great to see you joe . Yesterday, after we had a lot of commentary on comments yesterday. As the day went on, i did get followup notes. He quoted himself saying i dont have a clue whether the next 10 is up or down. Why is that a sell recommendation he made other comments for how hes doing i dont get the impression hes not long hes participating but maybe not to the extent in tech. He has been in tech in amazon and other things it wasnt an immediate, this is a ragingmania you have to get out of things. Coming up, a plan emerging to save jcpenney from bankruptcy. Squawk box is coming right ck so youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com welcome back to squawk box. Jcpenney could be closed to being rescued. Small owners Simon Property and brookfield are close to a deal to save jcpenney from bankruptcy saving jobs and stores wells fargo also agreed to give 2 million in credit penneys plans to seek approval from bankruptcy judge early next month. Jp morgan chase reportedly firing several employees who allegedly pocketed bailout funds meant to help Small Businesses showing that they improperly applied for and received funds under the Relief Program unlike the ppp funds and what is called the eidl program. Dispersed directly with grants up to 10,000 for businesses hurt by the pandemic i imagine as the pandemic continues or the aftermath of it that well learn, sadly, more stories of both businesses and others doing things trying to take advantage during this period good for jp morgan for finding it and immediately firing these people. You saw september 30th, 25 occupancy in restaurants in new york city. In new york it is a first step there are some strict rules with that. The headlines first came out, i know a lot of people were happy about it there is a view that it is so uneconomic uneconomical that it doesnt help but would hurt. It goes both ways. The rules are so strict you have to have updated venting there. The view is that it will help restaurants that have outdoor seatings that can continue if you can do outdoor and 25 inside, that helps you if you are trying to just do 25 , it is better than not hoping but people are making some very, very hard discussions which may come this fall which may not be to the good side. You are not going to be able to eat outside much longer as the weather turns. You want to invest in a business, becky. Outdoor heating. Honest to god. I already bought one for myself for our porch the big ones people are putting outside. These restaurants cant get them fast enough. Thats where the market is going at least in new york city right now. You can buy them on amazon. When we come back, shares of tesla on a wild ride this ekwe wooem well talk former ceo mar. Thats next. Clean is a feeling. Its the simple joy of washing your hands, without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. Teslas five for one split last monday has caused volatility to stay the same, maybe even go up a little. One split did not calm the volatility the stock dropped 21 last tuesday. Joining us is it mark fields, tpg capital Senior Advisor former ceo of ford i would ask you about last week, mark why confine it to that what do you make of the tesla phenomenon over the past why even go over the past six months lets stick with six months where weve seen it rocket to unbelievable levels. What do you make of that i think overall what investors are doing are looking at electrification, looking at all of the products coming to market electrification is real. It will be a dominant form years out in the industry. Theyre looking at tesla theyre saying, hey, listen, this he have a very compelling brand. From a growth stand point, its up side for them they are building a plant in germany. Every product whether its the cyber truck, semi truck, those are incremental products theyre not replacing products in their lineup. Theyre looking at two other things the competition, yes, there is an onslaught of vehicles coming but the software is very difficult. At the heart tesla is a software company. You can see folks like vw that are introducing a model in europe thats having a lot of problems theyre an excellent engineering company. Finally the c o2 regulations, even during the covid downturn, no country whether its china or europe, they havent backed off one inch on their c o2 reduction targets, and thats going to go well before electrification. I think a lot of investors are looking at that. You have lots of millennials who are on robin hood, other platforms, staying home saying, hey, this is a little bit like fantasy football and i think thats a little bit driving t. Youre going to see a lot of volatility over the next couple of months with this company because they have proven, listen, they can successfully raise money literally on the backs of their shareholders, but they have yet to prove they can generate a huge return and thats decently important in the automotive business. Theres a lot to unpack in what you said. First to market, they have a lot of advantages with the battery, but you wonder and with technology thats what we talk about when we have some of the old car guys on, gm is on you ask a question, is the technology comparable . And they kind of have to concede, no, tesla is miles ahead. But then on the other hand, you know, it didnt get in the s p at this point because those profits, are they really profits if you factor out, you know, regulatory and c o2 credits . Thats the return for investors that youre talking about. Nice to raise money. It puts them they have 5 billion more to develop things but when do you actually see a return not dependent on regulatory or c o2 credit . Youre exactly right. When you look at their business, theyre selling these regulatory c o2 credits to the other oems that need them in effect, the legacy or traditional oems are subsidizing the tesla vehicles for the time being. If you look at the net profits, on a gap basis they produced 220 million of profits during that time period they sold 782 million of regulatory credits which are basically 100 margins. Theyre making money on the regulatory arbitrage as opposed to the basics of designing, manufacturing, marketing, selling vehicles. Okay. And you have to do that because this is the they have to reinvest in their existing products, building the new products cash is very important were going to have to end it there, mark. We appreciate it out of time. Thanks well talk more about it who knows where the stock will be then. Well be back with more squawk box. When disaster strikes to one, we all get together and support each other. Thats the nature of humanity. No one thought that they were going to do this before it happened, and everyone just did it. I think thats the way that human nature should be looked at. Futures lower after yesterdays big rebound. Well take a look at what to watch this morning thats straight ahead. Amc reopening theaters across the country an update on the state of business from the company ceo. And big tech party like its 1999 a closer look at the tech boom then and now with the onetime top rated analyst. Second hour of squawk box begins right now. Good morning welcome to squawk box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. This morning, take a look at u. S. Edge witt at this futures at this hour lets show you how things look to be i wish i could say firming up, but we are in the red off triple digits on the dow about 118 points down. S p 500 looking to open down about 18 points. Nasdaq looking to open off about 15 points after we had a little bit of a recovery. Joe . Yeah. It didnt end on the highs yesterday, but this mornings move in the futures follows that rally yesterday with the s p 500 rising 2 percent pers f for the june nasdaq pulling out of correction territory rising nearly 3 you can see it it did at the very end you can see. It came back a couple of percentage points. Mike santoli joins us with more on the markets just right off the bat, mike, yesterday towards the end of the day, what do you think, people were saying, wow, this is too far too fast this isnt over yet in terms of ripping i wringing some of the excesses out . What was that . I dont know that it was that kind of conclusion but it was very mechanical. The market did obey maybe some levels that you might have expected it to at the outset take a look at the s p etf, the spy. What you saw was the rally back stocks at that line right there. This was a line that the market had followed for months and it rallied right back it was right below fridays close. So essentially the market rallied almost to the nickell up to where it had closed friday. Couldnt get past it backed off at the end. It doesnt mean that thats all of a sudden some kind of waterloo line for the market, but it does say once you get the sharp selloff, people are deciding how to maneuver tactically, trying to figure out if it was enough of a pull back, theyre deciding thousand operate. Thats not too surprising. Look at the other times where the market went vertical and had a big selloff. You get a saw tooth and sideways move youve had this since march. Its not unusual who knows if we get Something Like that along the way if we dont make a new low take a look at the fixed income side of things if you want to ask the question, are we really seeing the market worry about macro stress credit impacts, things like that, this is the relationship between high yield debt and treasuries, comparable treasuries. What you saw back in late june is high yield really under performed treasuries that means people were getting more nervous about Corporate Credit risk. Thats not happening now it seems mostly about a stock market thing, positioning in growth tech and whether, in fact, that was enough of the threeday selloff to maybe flush away some of those extremes. Joe . You know, mike, it was up i think you remember we talked about it quite a bit, we had a Technical Analyst on three weeks ago, two, three weeks ago, Katie Stockton the bullishness and the complacency has gotten to levels, you know, where perhaps youd be expecting a pull back i think some of the other internals of the markets as well, how extended they were yeah. So we were thinking 5 to 10 , at least thats what she said. Does a 10 pull back in the nasdaq, does that count as a resolution of that or do you need it in the s p no, the s p gave you 5, 10 youre down 7 in the s p as well. You dont need a full correction then . I think youre probably better off looking at the s p just because the nasdaq in particular is so much even more concentrated than the s p and people complain that the s p is too concentrated yeah. Well, 7 its 5 to 10 nice to get 10 hey, we corrected. If you got 10 from the highs, youre not even back to where you started in july in the s p. Yeah. Exactly right. Exactly right. Okay mike santoli thank you. See you again. Becky . Joe, i didnt even realize, i should compliment you on your purple ty today. Really . Well get to that in a moment purple tie very news. This lighting is so weird i was just messaging i wear a blue shirt this is a deep blue. I think this lighting is too hot, andrew. I dont know i want to get back to the nasdaq im trying my best trying to get back there here im at home but i dont look this looks yellow, doesnt it im not its not purple this is like a brown the other day the purple ill let you in on a little secret you can adjust the light yourself. No way . This thing i cant even get close to it. Im going to be like a fried egg if i get close to this thing andrew looks so soft looks so soft and smooth go ahead, becky. Once you get the lights dont touch it . Okay i wont. Lets get you caught up on a developing story right now the ceo of astrazeneca speaking out about the companys trial shut down after a woman in the u. K. Experienced neurological symptoms meg tirrell joins us with the latest the more we hear about this, maybe the more confusing it gets reporter yeah, becky its certainly in the nature of the way the information is coming out the ceo of astrazeneca speaking at an organized conference he had been scheduled to speak in saying they do believe if and when theyre able to start their trial, and depending on that, that they will have results available by the end of the year to submit for Regulatory Approval he believes if this is allowed to restart in a timely way, that they could still potentially have an approved vaccine by the end of this year or early 2021 now he also emphasized that they are awaiting an official diagnosis of this woman in the u. K. Who developed this neurological condition that trial restart date, he said, is ununknown, and that isn the hands of a safety committee. Soriot said its not uncommon to have a pause like this given their size he said, quote, its very unusual for a vaccine trial to not stop the difference is the whole world is not watching them thats an important point, guys. The whole world is watching these trials thats why when yesterday the news came out that soriot had given more details on a private investor call arranged by jpmorgan than the company had been giving publicly and in response to detailed questions from the media, many eyebrows were raised. Some of the details that we learned on that call were that he said the diagnosis was not confirmed. While they are neurological symptoms and dr. Francis collins used transverse militis, although they say it isnt confirmed yet. They side they were on the trial and could have received placebo. This is raising questions. Back over to you. Meg, how complicated is it to diagnose transverse myelitis how long before they can say, yes, it is or, no, its not . Reporter thats a good question im not sure how long that diagnosis takes. The complicated question is if they can prove it was not related to the vaccine if the person started to have symptoms before she was vaccinated if they can prove it was not related, then the trial will be able to restart sooner experts ive been talking with saying while they heard this and thought oh, thats probably not related to the vaccine, it will be very difficult to disprove it thats what were waiting for. Meg, do we know for certain that this is the only incident in this test or maybe even in one of the previous tests for safety with the transverse myelitis you see undercurrents that maybe was this the first one . Can you confirm that for sure . And the only one reporter this is the only case that has been referred to as potential transverse myelitis that we have heard about so far from the company but there was a previous case that turned out to be multiple sclerosis diagnosis that did put it on pause back in july. That was similar but it was attributed this could be ms as well so but they did it does get a little you know, a little concerning when we spoke to Scott Gottleib yesterday, you know, about, you know, how the coronavirus does cause covid and there is always the possibility that that spike protein has something to do with the immune the hyper immune response where you get into those issues he talks about the different epitopes and it gets complicated. Then you would worry about the other vaccines, too, right its all early and hopefully thats not going to be the case. Reporter yes, theoretical at this point okay. All right. Thanks, meg. Andrew thanks. Coming up, thanks, joe, when we come back on the other side of this, Morgan Stanleys carla harris is going to be here to discuss funding for minority and womenowned startups from its Innovation Lab well hear from her after the break. Then some Tech Companies in the spotlight for giving parents extra time off to deal with school those without kids say its unfair fascinating debate john fort will be here to break down both sides of the argument. Then well hear from the ceo of amc, slack, honeywell and Mohamed El Erian before we head to the break, take a quick check on markets. We are in the red across the board. Dow off 107 points s p 500 off 15 points. We are back right after this 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, everybody. Morgan stanley announcing it will be expanding its multicultural Innovation Lab. Its looking to try to lessen the bc funding gap joining us is carla harris shes head of the Multicultural Strategy Group good to see you. Good to see you as well, becky. So this is five years now weve been talking to you about this since 2017 when you first launched this Innovation Lab why dont you tell people what this is and why you started it. Yes its an inhouse accelerator that is focused on multicultural and women entrepreneurs. We give them capital, content, six months of content and we also give them some of our best Investment Banking clients to hopefully scale their business it is our way of trying to close this gap that has existed for a very long time with respect to the inequity of the distribution capital to women and multicultural entrepreneurs so far, so good, becky youve invested in 31 businesses so far. Yes. What have you found how have those businesses done well, theres three things that ive found. Number one, youve heard me say this before. It is not a supply issue every year that we open up the invitation for applications, we are deluged with applications from entrepreneurs that are multicultural and women with tech enabled businesses across all variables, med tech, health tech, you name it. The second thing is these entrepreneurs are extraordinarily resilient. No surprise. Its so difficult for them to get capital, it takes quite a lot of grit, if you will, to even get to the point where you get to be to our office or a vcs office. So i would argue that many of these businesses are derisked. They are extraordinarily resilient. We have seen this during this covid19 period because many of these businesses have either pivoted or they have found a way to offer a new product or they have found a way to accelerate their businesses during this time so we have had Extraordinary Results so far whats an example of that whats some sort of innovation or change that one of your companies is dealing with in the midst of this pandemic sure. Ill give you an example of one of the Companies One of the companies which is a transportation company, they are in another accelerator over at hertz. Their businesses have soared probably 3x, 4x because they have a proprietary Distribution System where they can move products in this case, furniture and other household items, from one place to another in a very efficient, costeffective manner weve seen another company, blue wave, in the last cohort, that has a disinfectant product where you can put the machine, lets say, in a hospital and you can put a teddy bear in there and it can remove 99 of mrsas. In this covid19 environment that is something that has grown with respect to demand i can go on with a few others from our first class, second class, third class, fourth class. I like the teddy bears. How many have you had in each class. 31 businesses, i would have thought ten a year you would have had 40. In the first class we had 5, becky. Okay. Then we had 9 companies in the other two cohorts and we have nine back with us right now. Then as you know, this announcement is about doubling that so i would expect you will see in 2021, 20 companies that will come out of our lab. Two different cohorts that will run at two separate times, all with the same function, multicultural and rewards in this class we will have at least four companies that will complete rounds while they are in the lab, and thats unprecedented. Wow carla, just in terms of how things have changed. They wanted more companies we didnt have them. I think a lot of them were not doing things without putting minorities or women as employees or on the board. Do you think its changed . Have vcs come a little more open to funding the companies that they may have ignored in the past i do think, becky, weve made an impact. One of the things weve talked about before is the more data weve put in the marketplace and what an extraordinary opportunity it is, the more people will take a look at it and the more they might start to put their toe in the water obviously on the back of the terrible tragedy of mr. Floyd, youve seen a number of Large Companies announce a 100 million commitment to africanamerican entrepreneurs or 250 million commitment to women and multicultural entrepreneurs. More and more people are making the pronouncement that theyre going to be focused on this. Then there is obviously a lot of companies that have been highlighted. Weve done a number we did a special covid19 episode for our access and opportunity podcast where we talked about Miriam Rivera and one of her companies called uber zoom and thats a ride share for children. Just in raising the level of visibility, now i think we are trying to remove the excuse of i cant find any because were putting it out there front and center i do see people start to make changes either in their pronouncement and in their investment activity. Great news. Carla, its really good to see you. Good to see you. Well talk again soon. All right thanks so much for having me on. Thank you folks, also a programming note dont miss cnbcs inclusion and action forum today examining how Business Leaders can take immediate action to address Racial Disparities in their organizations and create Sustainable Solutions to allow for equity and opportunity for all. You can join us today. Register at cnbc events. Com inclusion joe . Becky, thank you coming up, big tech is under fire, this time from some employees. There is a battle brewing between parents with kids who are dealing with school and those without kids who says its unfair that those other parents get extra time off jon fort joins us to break down both sides of the argument check out the shares meanwhile, spotify upgraded to outperform from credit suisse. Also, some optimism about major labels that are participating in the Music Streaming Services marketplace offering, which thats artists pay spotify to promote their new music. Squawk box coming right back time now for todays aflac trivia question. In what year did the fictional character mario debut in a video game the answer when cnbcs squawk bo ctiesxonnu n unexpected bill not covered by my Health Insurance. And this is the aflac duck who helped me cover it. Aflac. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with expenses Health Insurance doesnt cover. Get to know us at aflac dot com. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Now the apes to todays aflac trivia question. In what year did mario debut in a video game the answer, 1981 before the release of mario brothers in 1983, mario debuted as jump man in the game donkey kong welcome back to squawk box this morning google, microsoft, facebook, salesforce and some other Tech Companies in the spotlight over policies giving extra time off to parents trying to manage with kids remote. Several employees without kids saying its unfair jon fort is weighing in on this tech benefit this morning. Jon. Companies like facebook and salesforce giving time off to parents to deal with Remote Learning have the right idea in many cases where they have all remote or hybrid schedules, anything would be unworkable covid adjustments are hard for everyone imagine having a wonderful, precious, needy creature interrupting you constantly for help with long divisions, more descriptive adjectives, my computer wont work. A lot of this falls on working mothers. This targeted timeoff just for parents might be the best one, not just for the workers but for society. Jon, so why does anyone have a problem with this . Reporter well, andrew, on the other hand, diversity is big right now, right seeing things from someone elses point of view its funny how tech executives who tend to be in a married with kids benefit target a covid benefit to parents with kids we have to make adjustments. You know who else has it tough people with aging parents who arent sick. People with out of work siblings single people who are staring down depression. Time is money, people. When Companies Give parents more time, theyre giving them more money. How about this, Silicon Valley give them more time to deal with their kids but give everyone else Mental Health or timeoff or a bonus. Its only fair, guys jon, i am trying to figure out which sides persuaded me. I was originally sort of offended by the idea that any, frankly, Single Person you know, if single people out there started screaming about maternity leave, i think there would be peoples hair would be on fire to me in this moment thats sort of the equivalent. At some point somethings got to give and i just dont know, you know, where the line is because at some point if you said we want to do it for parents and grandparents and i accept that, i actually think we should try to, to the extent you can have empathy and do that, but the question is you said it. Where is the line. Do you want to come down on that its the empathy thing, andrew its easy for us to see the struggle of somebody whos having a struggle similar to ours tech executives, they have help at home. They have friends in the same demographic having trouble with kids it might be harder to see the struggles of somebody feeling especially isolated, the people taking on the extra work when someone has to be out for a period of time during this time, even some companies are using technology to check in on employees, these pulse checks, to really hear how theyre doing. Youve got to look at that data and really think outside of our usual boxes to understand how people are doing because, look, this pandemic really is affecting everybody. This is one where i thought you were having a harder time potentially arguing the other side of this because really i thought a lot of these companies were pretty generous when it k5i came to taking any leave for family member, parent, sibling, somebody that you had there. The impression that i got, maybe its the wrong impression, but the impression ive gotten is these are the people who are frustrated they have to work more a lot of the perks that were there before, like food all the time if you were there 24 hours or the idea of beer after work, those are the types of perks that parents werent taking part in before either different perks for different times. I did think about that but then i thought, oh, wait a second, a lot of these places have child care on site for people so there was a balance in those benefits, i think, to begin with but i do think that i hear the argument from some people who are saying, yeah, a lot of these covidrelated extra benefits do target people in a different demographic. Yes, i get it, these benefits are important. Im a parent i can feel it. I understand the aspect of feeling left out hey, ive got some problems over here, too. What are the companies doing . Are they actually responding by trying to make sure everybodys getting taken care of . I dont think weve seen the full reverberations from this. There was a story just last week in the New York Times that was kind of laying out the sum of the blow back that various companies were facing, but i do think theyre assessing it i was speaking to one of our cnbc at work events. The head of the society of Human Resource management and a couple of chief Human Resource officers who say they are getting this data in from employees where people initially, there was a surge. Everybody was glad to be employed companies were glad to be operating through this pandemic. All of this productivity then people hit a wall people are saying, hey, i cant go on like this in perpetuity. You have to help me out here jon, thank you. Really thoughtful. See you soon still to come on squawk box this morning, more than 1 million movie goers headed to amc domestic theaters. We will speak with adam aaron about the changes being made and what hes seen. Later, Henry Blodget joins us to talk about tech then and now. Dow looks like it would open down by 117 points now s p down 15. Nasdaq off by 30 one good day in the last four for the bulls. Yesterday a positive day but that came on the heels of three pretty rough days. Well continue to watch this as we get closer to the market open squawk box will be right back. Tmobiles new offer on iphone 11 pro is even better on our most powerful signal. Switch and get two new lines of unlimited for only 90 and 2 iphone 11 pros on us. Only at tmobile. [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. The only place to watch the game tonight, the chiefs and the texans kick things off chiefs did pretty well last year pregame starts at 7 p. M. Eastern ti time tune in. I admit, were happy anything is back i didnt bet on the draft. That got high ratings. Even this is going to be really highly anticipated i will admit that i checked the time on it to see whether i should bet but it doesnt start until 8 20. You can wake up and find out. I could i could. But i like to watch it i actually bet on the second nba game last night and i should have taken the under because i thought the clippers would win but i had the over and lost on it i do a parlay to try and make more its silly not a lot of money anyway, the chiefs are 9 1 2 point favorites right now. It is exciting theres a big schedule on sunday bunch of teams playing on sunday were going to try it, see how it happens i think that playoffs for the nba, i would say i dont i dont i cant speak for anyone else. For me theyve been a success. Ive never watched so many games. I had the celtics yesterday and i took the over and it had to go to overtime for me to get to 209 and they lost by 3 points. Its fun im having a lot of fun. Heres what he like i like that theyre piping in crowd sounds it makes it much more fun. Im wondering that for today theyre supposed to have 22 capacity in the stadium in kansas city tonight. There could be the real feel of kind of like people there and things going on. Ive gotten used to having the piped in sounds behind the whole thing. Its going to be interesting to see how this looks on tv. Its not bad. I also had believe it or not, i had the braves and i had them over 9. Did you see the score of the braves yesterday, beck i did not no. 299. 299 thats the most thats the most ever. Thats the most thats a new record that was overkill. I should get paid. I should win more on that. Andrew, we have other things going on we do as we head to break, take a look at shares of boeing right now. The Aerospace Giant facing a probe over the deal with nasa. Reuters says this comes as federal prosecutors continue an investigation whether they improperly guided boeing during the bidding process. Take a look at gamestop. 1. 40 per share. A bit wider than expected. They saw revenue miss forecasts, although Digital Sales did increase nine fold ill say that again, nine fold over the year before compared to store sales before down 12. 7 . Talk about bricks and mortar and where this is all headed youre looking at that stock off over 11 squawk returns in just a moment i really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. The volatility. The ambiguity. The moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Amc, the largest cinema chain says more than 1 million movie goers are headed to the domestic dealers thats still well below earlier levels, obviously. A welcome rebound after it shut down all of its theaters in march. Joining us is adam aaron, Amc Entertainment president and ceo. Tenent, pretty good opening. It was good to have that content, i guess, adam but that adds to the problems that theres not going to be a lot of big content because its hard to make a movie now, too. Its like a perfect storm. Lets start with the last segment. Amc, go chiefs tonight back to amc. Were just so encouraged we only opened our first 100 theaters in the United States three weeks ago. Were about 75 open for this coming weekend and already a million moviegoers have come t our theaters theyve seen firsthand the safety protocols that weve put in place in consultation with clorox and the Harvard University school of Public Health our theater cleanliness scores are the best theyve been in decades. I think you can eat off the floor. We need more first run movies coming out a Million People have seen our theaters are spotless and safe were very encouraged, not about the next two weeks, but as you look ahead to 2021, we see recovery so what type of capacity do you need to where you dont need to shut your doors again at some point . You cant if it was going to be, lets say, 33 for the next year, can you survive on that, adam oh, yes, we can, because were not an airline or broadway theater that traditionally runs full in the Movie Theater business, were a church built for Easter Sunday last year, amc which sold more tickets than anybody, we sold 350 million tickets in the u. S. And internationally, we only sold about 17 , 17, 17 of our seats. The capacity limitation is not nearly the problem that you would think. Its counterintuitive. The issue for us will be convincing movie goers that our theaters are safe, that our theaters are clean, that they can come out to our theaters, have a great time, be entertained and, of course, were doing that with our safety protocols. So far were off to a great start. As weve gotten to know more about the virus, i know surface im worried about everything i dont want to touch obviously we worry about everything now we think more about the aerosol transmission i think more ventilation and i guess, you know, social distancing in the theater itself high ceilings, that helps a little but do all the theaters is the ventilation system consistent throughout the entire chain or has it been upgraded . Exactly what you just described is the reason it was so smart of us way back in may, june to Start Talking with Harvard University school of Public Health. Weve been talking with current faculty. They were on ventilation and air filtration long before we were, thats why we went out to find experts of the top scientists in the world to advise us so, yes, were requiring masks of everyone. Yes, were doing automatic seat blocking so theres social distancing yes, we have disinfecting wipes and sanitizing gel all throughout the theater much more important than that, weve developed millions and millions we have our air filtration 13 times higher than before the covid19 pandemic. Weve bought electrostatic sprayers for all of our theaters so that were spraying down our auditorium with these electronically charged cleaning solutions. So were all over those touch and airborne transmission of the virus. Our theaters are, as we like to say, safe and clean. Hey, adam, separate from covid and the experience in theater, perhaps the most significant thing thats happened in this industry arguably happened over the summer in a transaction with the Parent Company of this network, comcast, which of course owns universal, in terms of shortening the window with which films can be released and then released in theater and then separately released you have three weekends, 17 days can you talk about that deal and what you think the larger implications are for the industry sure that agreement between amc, the largest donor of the United States and universal was very carefully thought out, modeled, researched and we came to an agreement that we think works for universal, one we think works for us weve been saying for years we would never shorten the window if it was disadvantageous to us but we were willing to look at other models if our shareholders came out ahead in addition to universal, were not only getting paid when people come to our theaters, well get a share of that home revenue. Were very confident that were ahead of the game. Just what you think you can get the same if we dont get it from everybody else, well insist on the traditional window that is the case were getting movies to the home observing more and the windows which is more like 74 days adam, how much is that. People are watching at home on their couches. How much of the revenue and for how long your good friends at universal swore me to silence that i wouldnt tell anybody, not even cnbc. But what i have said before is were getting a big percentage and enough that if there is any loss in the theaters, we think were ahead. Remember, Something Like 80 of movie going occurs in the first three weekends in theaters, so its and the bigger titles, those movies, universals, thats fine theyre not going to the home in 17 days. In the last five years weve invested billions of dollars in our Movie Theaters putting in seats, better sound, better technology, food, bars everywhere, wherever its legal i should say so, look, i think our theaters will compete if the covid virus has taught us anything in the last five months, americans want to get out of their houses and their apartments i dont know about you, but ive been trapped in my house the last six months. Going to a Hardware Store for three hours is a thrilling afternoon for me i think thats one of the reasons why a billion movie goers have already come back to our theaters lets be honest with each other, theres not been many new releases were not open in new york yet were not open in los angeles yet and yet a Million People are willing to come out. People want to come to theaters. We think that will be true even when were back to normal in addition to being in theaters as well i definitely have some people in this household that just really, really want to get back to the movies as well. We talk about it quite a bit adam aaron, thank you very much. Appreciate all the time you spent with us this morning i miss the popcorn. Thank you, joe. Trying to figure out how you eat it becky, do i like through a mask . Fake butter or real butter i think its the salt. Real butter all the way through, baby. The ecbs decision on interest vats out. The bank will leave key rates unchanged. The ecb says it expects rates to remain at current and lower levels until it sees inflation getting lower. It plans to continue asset purchases with the total purchase remaining at 1. 35 billion euros. Squawk box will be right back. 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. Schwab. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Shares of International Gaming bar stool sports dave portnoy whos been doved captain of the Retail Investor i dont know if thats a selfdub or hes been dubbed that when the stock market, you remember, the charts were. The highest grossing movie was Mission Impossible 2 at the end of the First Quarter the s p stood at 14. 98 ceo. Office and affiliates top ranked wall street interventionist during the dotcom book in the 90s. Giving that we talked to stanley druckenmiller, we described raging mania is that a buy sign or sell sign. A lot of people think thats a sell sign but not always. First of all, greatto see you. Thank you for having me, andrew and team great to have you as always. I would say i was very relieved when joe clarified this morning that Stan Druckenmiller said he didnt know which way it was going, so i can admit i dont know which way its going either huge interest in retail and trading. You look at google, facebook, microsoft. That is very high. You mentioned dave portnoy there are a lot of things who make some of us who live through the 1990s, you, im sure, whoa we have this deja vu all over again. People talking tech stocks. A lot of questions whether the incentive system was appropriate. There was a lot of you know, as warren buffet likes to say, when the tide goes out, you really get to see, well, whos wearing clothes, who isnt, whats really happening. When the tide goes out on this one, what do you think were going to see well, i think ultimately what we saw coming out of the tech boom and the tech bust and what we saw coming out of 2007, 2009 is that ultimately cash flow matters. You have stocks trade at some multiple of cash flow. Ultimately most stocks tend to trade around 20, 25 times. Good Growth Stocks of earnings i believe that tesla will eventually trade there when will that be given that they barely make money now and how much money can they make one of the reasons that stocks like that are just have such wild volatility and such potentially extreme valuations is that the range of reasonable assumptions for the future is so broad. When you have a stock thats making money, like facebook or google, a company like that, its much narrower you can see what their profits are. You can see what their growth rates are. Very much tighter. Its the same sort of thing we saw after 20002007. Valuations will get multiple. Between portnoy and softbank, is the market being artificially inflated thats the question. Artificially . Then people blame the fed. The market is the valuations relative to history right now across the market are extremely high in the past that is usually heralded crappy returns for some period Going Forward you never know when that is. Tomorrow, this afternoon, five years from now, very hard to say. Going back to the day trading phenomenon, this is something we see in each one of these peaks it becomes very easy and fun to trade a lot. They have actually done studies about whether day traders make money and one of the ones that was done after the 2000 boom was basically after transaction costs, including tax, 80 lose money. There are a handful who consistently do well do they do better than the market wasnt looked at in that study, but there are some so its not impossible, but most ultimately dont do better. Thank you for your perspective. It is great to see you we hope to talk to you again very, very soon. Thank you. Thanks. Still to come this morning on squawk box, we have the ceos of honeywell and slack. Stick around, well be right back when the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Good morning the s p 500 set to give back some of its gains. Futures are now mixed this morning. The nasdaq just had its best day since april and the s p had its best since may what happens to work from Home Companies when people start to go back to the office . Thats the question. The ceo of slack is going to join us on this weeks quarterly numbers and the fierce competition its in with microsoft. A special interview with one of the newly minted members of the dow industrial average we have honeywell ceo who is going to talk to us about the u. S. Economic recovery straight off of breaking jobless numbers data the final hour of squawk box begins right now. Thats right back to the future with honeywell. Maybe everyone will eventually get back in at some point. Good morning and welcome to squawk box here on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equity futures, a mini battle between the bulls and bears. Now down 67 points theyve been down more than 100 points i dont know if we got to 200. We might have at one point they were up. Yeah. Anyway, the nasdaq indicated up 4 and change now, almost 5 the tech stocks that have sort of been thats the dog. Everything else seems to be the tail at this point maybe that means something that theyre now that the nasdaq is now in the green. Who knows . Treasury yields, last time that thats been weve seen a big move back to. 7 in any case. Gets a little believe it or not, gets concerning when it drops below. 7 we feel better about the Global Economy when it gets back to. 8. Thats a totally different situation. With the ten year, it is like watching paint dry, beck joe, theres been so much made about the correction in the nasdaq, the fastest correction ever moving down 10 in three days yesterday it made up the losses. Were looking at a small period of time. Massive gain in the last nine months. Thats where all the stay at home stocks are, too, in the digital names as well. Yeah, the nasdaq really outperforming. Since the marleaus i dont even want to do the math on that. I mean, its a big number, must be if we were down near 65, whatever it was, all the way up to where it is now its an amazing number an amazing number. In the meantime, folks, lets get you caught up on some of the days top stories we are hearing that tiktoks Parent Company is speaking with the u. S. Government about some solution over the fight to the popular social media app the source tells cnbc that an agreement might allow Parent Company bytedance to keep some ownership while satisfying regulators in the u. S. And china. Possible Solutions Include handing over operational data. A story update we just got this morning. Astrazeneca said it should know before the end of the year whether its experimental covid19 vaccine is effective if it can resveum sum Clinical Trials soon. Investigations were suspended after reports were that it was transverse myelitis. The ceo saying its not confirmed yet. Theyre still watching this. It was confirmed that it was one of the people in the trial who was taking the actual vaccine, not a placebo. Thats a question we had yesterday. The shares are up 1. 1 rail operator Kansas City Southern has rejected a roughly 20 billion takeover bid from a group of investors according to people who spoke to the wall street journal. Kansas city southern had been offered 208 a share by Global Infrastructure partners. The bid under valued the company. Andrew thanks, becky. Meantime, the senate set to vote today on a less generous or skinny Coronavirus Relief bill this is a new cnbc change Research State of play survey showing voters in battleground states support more economic aid. Eamon javers joins us with the latest from d. C. Reporter they do take a look at this other number from our poll which shows what voters in those swing states, remember, these are likely voters in the swing battleground states that are going to make a difference, what those voters mean about whats helping americans. 48 agree with the statement 52 disagree that would suggest a political incentive that the president had some work to do on that front of convincing people before the election that he supports working americans. Hes doing enough to help them the numbers close enough that it gives you the sense that it might be movable here. Still though we are seeing this deadlock in washington over additional stimulus funding. We heard from Mitch Mcconnell who suggested that the democrats and the white house need to get back to negotiations meanwhile, hes pushing the socalled skinny bill at 500 billion much less than democrats said they won it heres what mcconnell said yesterday. The only way we get an outcome, obviously, is for the to come back to the table and for us to reach an agreement i think its pretty obvious both from the administration and the Senate Republican majority were not going to get a 2. 3 trillion bill that deals with a whole smorgasbord of things. Reporter moving forward with his bill today that is not expected to succeed. So well be left with nothing at the end of the day theres a whole host of different groups here today. You have the fiscally conservative republicans who think this is far too much money. Have you another group who are running for reelection. Theres a lot of them. Some of them are in vulnerable states those folks do want to have something to vote on, to be able to go back to their constituents and say, look, i voted for a good proposal. Its the democrats who struck it down thats why were going to see the exercise in the skinny bill. Overall we could get to the end of september without any stimulus bill in the offing. So hold on though do we really think that congress that nothing is going to get done . Is that do we expect congress will not get anything done ever . Reporter its looking possible now if they leave at the end of september without a bill, i mean, theyre going to go home and campaign and thats pretty much the end of the legislative year the chances of them coming back after that are pretty slim so its possible you get to the end of september with nothing. Look, they are talking about a continuing resolution to continue to fund the government at the end of the month. They seem to have a handshake deal on that well see if it holds. There are some in the white house who believe whats going to happen is nancy pelosi is going to attach a stimulus to the continuing resolution and dare the white house to veto it. We dont know if thats going to happen or thats the scenario, but its possible we get to the end of this with knock nothing. Go into the election season saying, hey, look what we did to take care of american workers. Eamon, my guess would be, i dont know, maybe not, clear me up, are they trying to save their fire power where they dont get stuck . Because i cant imagine that happening in the midst of all of the rest of the things that were dealing with right and what mnuchin, the treasury secretary and the speaker of the house, they have a handshake deal for a clean, continuing resolution which means a continuing resolution to fund the government on basic terms. Not clear for how long it would keep the governments doors open without adding any stimulus to that measure so the idea is they could just avoid the problem of a Government Shutdown while still continuing to wrangle on stimulus negotiations. You know, these things can get conflated at the end despite any handshake agreements in place. You could see pelosi possibly try that strategy. On the other hand, maybe pelosi, as cynical as this is, say, republicans dont care take this to voters at the ballot box okay. Eamon javers, thank you so much. Appreciate it. Thanks, andrew. I love this delay. Lets talk more about the bill that the senate is expected to vote on today. Senator rob portman. You probably heard a lot of that report, senator. I did. Just to distill it down to effect there are some people who would like 2. 4 trillion and then as you move down the political spectrum, i think we can get down to where youve actually got some republicans that want zero at this point because they think the economy is doing well, the stock market is doing well, weve spent a lot already. Lets just take a step back and see whether were already past stall speed. I wouldnt doubt you have some republicans that want some money back what do you think we need to do to target exactly the groups that still need help without breaking the bank . Thats exactly what the legislation does we vote on today. I would say, joe, in terms of your spectrum, its not 2. 4 trillion the house bill is 3. 4 trillion. Weve spent that amount. There are a lot of people concerned about the deficit and growing debt which will be the size of our economy for the First Time Since world war ii. On the other hand, we do need targeted relief. Today youll see a vote in the senate which will get a majority of senators and practically every republican which is a targeted approach. Lets deal with the Health Care Crisis, antiviral medication lets make sure the ppp program can continue it ended on august 8th that will be restarted and made retroactive. Lets also do something for our schools. Kids are going back to school. The republican proposal is similar to the democratic proposal 300 per week federal supplement on top of the state supplement this is a substantial bill thats billions of dollars, as we know, around here a billion used to be a lot of money. Now its less, i guess its probably going to be, as eamon said, about 500 billion thats a substantial bill. Theres a lot there. Not so much what eamon said, members in swing districts, its to get the negotiations started again. This will hopefully break the gridlock we will as republicans have provided a majority which is targeted i wonder what happens what do you really think the chances are . Its a good starting point, do you think, for negotiations . Then you say if theres a genuine willingness to leave politics out of it well yeah. There is not there probably isnt its weird, rob. You could get you could probably get the republicans that dont want anything because weve done enough and the democrats that dont want to do anything because, you know, theres an election coming up. That could be a bipartisan arrangement right there, people that dont want to do anything yeah. Unfortunately, thats probably the way this ends up, right . You know, i dont know. I think if there is a vote today that is positive, and i think there will be, i think there will be over 51 senators will support this out of 100, i think it restarts the negotiations it shows we have a targeted package that makes sense that americans are going to support strongly because its got the major provisions that people are looking for to help on the health care, economy, help on the vaccine and help on the testing. I hope that will energize the talks. You need 60 votes. You dont need 97 votes as we got last time. Weve done this about six times already in a bipartisan way. Lets get back to that approach focusing not on the politics but on the substance i think we can get something done, i do i think it will be next week, the week after before we do it i think that will be helpful to try to set the stage for a spending bill thats also clean, clean cr that eamon talked about. Then to have people go back home and campaign and talk about what weve done to help the American People here during the crisis. I think its still possible. Andrew . Senator, wanted to ask you about that campaign when people go back to their home districts that you have said, of course, you support President Trump. You have complimented him several times on how hes handled covid. Yet this book yesterday coming out from bob woodward where the president said i wanted to play it down. I always wanted to play it down. I still like playing it down because i didnt want to create or i dont want to create panic. Are you still complimentary of the way the president handled this and are you still supporting him . Well, as dr. Fauci said yesterday, who the democrats like to quote when, you know, he says something thats a little edgy, and i guess they dont like when he supports the president. He said, look, the president did what he should have done and that he was not exaggerating, he was not distorting and that it was appropriate given the circumstances that we knew at the time thats what dr. Fauci says ill also remind you, andrew, that was the time period when the president was saying, lets ban travel from china and democrats, including joe biden, were saying we shouldnt do that calling it zen know phobic we look back on that and think that was probably the most effective thing we could have done we could have done some other travel bands as well thats how it spread so quickly. Senator, can i ask you dr. Birx was brought in yeah. Senator, i think theres a distinction to be made clearly the president talked to woodward on february 9th where he clearly understood how deadly the virus is hes clearly indicating hes playing it down to the public. Im not sure whether you think, im going to ask you, whether thats comparable to what a biden or maybe some of the other democrats, senators and Congress People who may also have played it down, but unclear to me at that time whether they would have been in this same whether they would have had the same access to information that the president did. Yeah. Thats a good point. I will say, andrew, i went to every single briefing that was up here on the hill. It wasnt the president briefing us, it was the experts it was the ec, nih, it was dr. Fauci. These were the people, hhs, who were the experts in the field. These were nonpolitical people largely and there was a lot of confusion. Lets face t nobody got it quite right, did we . That includes the United States congress by the way. So it was a time, as dr. Fauci again said yesterday, he does not believe what the president said was a distortion. He thinks the president , you know, was saying what he thought was the truth at the time. I think thats important so weve learned a lot and weve learned, among other things, the fact that this thing spread so quickly because of the ease of travel between can you be tris and that ban ends up being something pretty smart to get done since that time weve made mistakes weve talked about the stimulus packages some of that money has not been properly spent some of it has we have a crisis on our hands. We still do. Were not out of the woods yet thats what im focusing on. Of course we dont want to incite panic and we want the American People to be able to make decisions this is a tough balance. We continue to have these issues we have to figure out how to get together right now as republicans and democrats and address it and continue to address it so we can both deal with the Health Care Crisis and get the economy moving. Senator, its always been a tough balance between, you know, trying to minimize the loss of life as much as we possibly can but trying not to lose, you know, half of the employment in this country permanently and trying not to lose half the Small Businesses and even some of the Small Businesses so theres always an economic component whether you like it or not with the balance between what youre trying to do its difficult and its difficult to this day but theres a lot of negatives that come out of it. Yes. Its been tough senator portman. We appreciate your time today. Thanks, beck thanks, joe, andrew, becky. Good to see you, senator. When we come back, two more big interviews were going to be talking about the round in slack shares and then honeywell ceo on the company being added back into the dow 30 club. Darreus dan same store sales are falling nearly 13 Digital Sales up 9 fold over the last year. Obviously people are playing video games, the question is where theyre buying them and how theyre getting them stk is down 9 1 4 stay tuned, you are watching squawk box on cnbc the United States Postal Service is here to deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Every day, all across america, tmobiles new offer on iphone 11 pro is even better on our most powerful signal. Switch and get two new lines of unlimited for only 90 and 2 iphone 11 pros on us. Only at tmobile. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back to squawk box. Im dominic chu. Lets check some of the stocks on the move this morning well start shares off with shares of rh Restoration Hardware up around 17 . Roughly 16,000 shares of premarket volume. Reported better than expected quarterly profits and revenues faster than expected key measure Profit Margins it declined to give a full year forecast because of the covid19 pandemic it expects trends on Home Improvement spending to last this year and into 2021. Shares of bed, bath beyond its being put on the best ideas list theyre signing the depressed level despite positive trends. They think its on a path of dramatic improvement in profitability. Then well end on shares of Penn National gaming which are higher by 3 . A buy rating over 59 rosenblatt. They had prospects for penns Online Sports betting initiatives that capitalize on bar stool sports they do attach a big caveat since theres no proof of concept and the operations there, they think there is a substantial down side risk if a bear case were to develop. Andrew, three stocks in the green. Ill send things back over to you. Thank you for that. Meantime, shares of work from home darling slack are at their worst level since april. They cited busineillings miss de a rise in shares wall streets reaction was missed the good in the report outweighs the bad. Others pointing to competitive threats such as microsoft. Joining us first on cnbc, stewart butter field welcome him into the program this morning stewart, speak to the concerns you saw what the market said or is speaking. Whats your view well, this is our fourth earnings look at the company we have a full year under our belt looking ahead to the sophomore year, this is an opportunity to continue to demonstrate what we have been over the last four quarters and kind of years before that, which is the growth is durable and, in fact, in this quarter we accelerated the rate of net new couple additions. Fundamental driver of the whole new business selfserve customers sometimes smaller groups inside of larger organizations that eventually mature to be the big marquis customec marquee customers. Thats up 60 versus a year ago. Thats a new baseline. Two slack organizations or more to connect across organizational boundaries thats been a real driver. Trials of the 8,000 and the analyst, shouldnt slack be growing at maybe not at that level but close to it. Profitability given this work from home trend . Yeah. Thats the easy part, i think. 10 million of free cash flow. Obviously theres a little bit of a boost we get from the change we operate like every other company. We continue to operate leverage as weve scaled up the top line growth i think is the important thing and, you know, i think zoom is a tough one for anyone to live up to but whats interesting about that is demonstrates the size of this market. A little bit of a surprise to everyone, i think. Zoom by far the winner here, but microsoft teams, cisco, everyone who googles meet product usually up so significantly. The reason is we used to meet in the Conference Room and have a conversation we need a sudden alternative now we do Video Conferencing instead. Anyone can wrap their head around that. I think you see people clicking on the link, starting the Video Conference communicating that way. Thats a person who is going to need a fuller set of tools over the next few years as work continues and certainly over the decades that come. So slacks a little bit of a longer adoption curve. More profound change and new categories, some familiarity but the 60 increase in net new customer adds is the driver of the business everything downstream of that revenue, billings, just the growth of the whole company depends on that. What we saw with slack connect was in q4, 140 yearonyear growth accelerated to 160 and q2 to 200 thats the thing driving the business gives a lot of conviction about the strength of the base that we can develop around. Stewart, how much faster do you think the company would grow if it wasnt for microsoft how do you think of them as a competitor i ask recognizing that you filed a complaint with the European Commission against them for anticompetitive practices its pretty hard to quantify that theres definitely friction that introduces confusion in the mind of some customers. Were 14 quarters into competing with them. We have grown significantly over that period and continue to add new customers. This last quarter we highlighted some of the strength in Financial Services with customers like northwest mutual, hsbc, lpl and thats against the backdrop of a much bigger trend. What you see as the Market Leader previous quarter we talked about verizon and amazon we see the Market Leader adopting slack, that can be media, retail, technology. As long as thats happening, we have a pretty deep conviction about where things are headed. The more progressive, the more theyre investing. Theres one more thing thats important here if you imagine yourself as a cio over this period, theres been a lot thrown at you. The network you have to protect, the epm, provisioning the people with laptops in an environment where theyre not coming into the office anymore theres a digestion period as people start to get their heads above water and start to think about instead of correcting things that are hard right now, taking it from the baseline to an excellent performance to really carry it through the Digital Transformation efforts, that will reflect really well on us thats going to cause a whole bunch of new demand. Stewart, we are about to run into some breaking data news and i know i wanted to talk to you about some larger Corporate America and cultural things youre doing at the firm i hope wecan have you back to get into that and have that conversation we do have this data coming. I do want to thank you for joining us this morning. I do look forward to talking to you again very, very soon. Always a pleasure thank you. Thanks. All right. It is that time. Latest jobless claims figure and Rick Santelli is standing by at the cme in chicago rick, the numbers please 884,000, joe, is the newest read for initial jobless claims. Very close to the expectations of 850,000 and on continuing claims, a bit of a miss. Expecting a number a little bit less than 13 million we ended up with a number more than 13 million. 13,385,000 is the number im sure the revisions will trickle in, but while were waiting, joe, lets take a look at august Producer Price index expecting up. 2. It is up. 3 on headline. And if we look at the headline number, remember, this series goes back to, what, 2010 because they keep modifying the inflation adjustment process the extremes are up. 9 and down. 9. Just to give you an idea if we strip out the all important food and energy, up. 4 double the expectations. Food, energy and trade were up. 3. Now for the long view, lets go year over year year over year x food and energy is up. 6 year over year ppi normalized, is down. 2 we were expecting a down number there. If we look at, lets see, year over year x food and energy and trade, its up. 3, a little hotter than expected lets go back to the revisions initial jobless claims, 881,000 was ramped up to exactly where the new number is, 884,000, which means this week is unchanged and as far as continuing claims last week, a very subtle adjustment from 13,254,000 the semis, we can say claims were a bit of a miss on the continuing side or close to it on initial pretty much near Producer Prices year over year, pretty hard to take the long shot right now considering all the questions as to demand pressure, supply pressure, supply chains, how thats all going to play out we continue to monitor Interest Rates and we have the last of 108 billion in supply today with 23 billion 30year bonds joe, becky i complained. Just let me ask you, quickly 10 inflation possible 50 is the new 35 so for us, if you think, you see that what would change the calculation for the Inflation Numbers and well get them back in line. That would be my guess all right i just wondered because you worried about it for a while and we hadnt heard it its dead. Back in the day when we were all talking about inflation, they said it wasnt around what they missed was the financial inflation. The inflation of many of the instruments of finance and capital. Exactly. So it all depends where youre looking and exactly what you want to see. Of course, i think that the new chairman and the new Federal Reserve and all their new rules, i think its going to be more inflation avoidance. Okay. They mean business with that music, rick. I dont know i know. What else . Squawk box exclusive interview. You dont measure up. Get yourself together and think about the future being added back to the dow. Also happened to be celebrating 100 years since going public exclusive interview with darius. Check out the price of crude oil. Yesterday the best day since early june the dow is down and the nasdaq is positive. Well see which one converges with the other if at all squawk box will be right back. The United States Postal Service is here to deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Every day, all across america, and whether we connect pnc kover the phone, online,ing. Or face to face, were here to help utilizing our resources as one of the nations largest banks and a local approach with a focus on customized insights. So youre ready for today. Welcome back to squawk box. Breaking news. Michael koor, retiring in february of 2021 as the ceo of citi jim frazier has long been in line for this role there has been speculation when this will happen Michael Corbat took the reins of the company several years ago. Hes done quite a nice job of it we could take a quick look at the stock. Maybe well do that on the other side of this break when we do return, well have an interview with the ceo of honeywell who will join us to take a look at the economy, sisssoucmo wn bune, mh rehewe return. Right now, the worst place to be is stuck inbetween. Accelerate your investments or pull back . Change the plan or stay the course . Thats why Northern Trust is here. With specialized expertise. A history of success through every economic climate. And proven strategies rooted in data and analytics. Giving you more control. Clarity. And confidence. For now and whatevers next Northern Trust wealth management. Born to be wild moves like these need pampers cruisers 360 fit with an ultrastretchy waistband and 360 fit that adapts to every wild move plus up to 12 hours of pampers protection so anything your wild child does cruisers can too our best ever fit is pampers cruisers 360 fit ms. Williams weve been working hard. Ms. Robinson . To make learning fun again. Ms. Duncan and making sure our students can succeed. Ms. Zamora were with you every step of the way. Ms. Robinson i know its a challenging time. Ms. Zamora no one wants to be back in the classroom more than teachers. Ms. Williams we have missed you so much. Mr. Hardesty but we all have to be safe. Ms. Robinson because were all in this together. Narrator making our School Buildings safer. Ms. Robinson working together, we can make it a great year. Narrator because the California Teachers Association knows quality Public Schools make a better california for all of us. Straight off the jobless claims number that we just got 884,000 new unemployment claims. Lets talk about the economy with the ceo whose business touches all of it. We have the honeywell ceo. They just rejoined the Dow Jones Industrial average and today is celebrating it. Look forward to having the conversation with all of you. Okay. Lets start out just by talking about getting back into the dow. Huge, huge moves we all looked at the changes in the dow and sometimes they can be a little surprising and confounding. I think this one in particular made sense not only are you a huge company that touches just about every area of the economy, everything from manufacturing, from defense, aerospace, health care and beyond, you are a company thats been touched on the s p said they want to make sure there is full reflection of the technology being used in the country today. Did you hear anything from them about why you were chosen . What did you think when you did hear no. I didnt hear a thing. I mean, this was sort of great news for the company, but i heard about it the same time all of you did i literally had a little message come across my phone saying honeywell rejoins the dow. Whats exciting for us, we left the dow or were thrown out of the dow in 2008 so its great to be back. Its a thrill for all of us here at honeywell we were a Technology Company that serves the industrial space. So there are companies that serve that are Technology Company that serve the consumer space and usually those get a lot more of the press but were a bit more of an equivalent and we serve industrial customers. Its a relevance and the innovation thats brought over decades thats been a part of the world whether its the catalytic converter, whether its safe lighting systems, whether its the most environmentally friendly refrigerator molecule and well continue to innovate, continue to serve our customers and play across a number of verticals but what really differentiates us is the agility and ability to transform ourselves and stay relevant your stock was up 10. 8 for the month of august. A lot of people pointing on the idea that you are being reported down some people who are indexing will have to be buying shares of honeywell. What do you think when people tell you that . I think there was a little bit of an impact but i think we took a pretty big hit. Some of our investors still dont really understand who we are and what we do some of our markets that were in, theyll be up, theyll be down, so on. Were going to continue to innovate were going to continue to stay agile. Well continue to bring Innovative Products to the marketplace. Frankly, if there are industries that are no longer like a honeywell industry, well exit that people are focusing on industries that we serve rather than focusing on the fact that were an innovation company. We had a pretty wide spectrum in terms of our business performance. We our biggest business happens to serve the aerospace industry, which all of those having a tough time, im certain its going to come back. Then we have at the other end of the spectrum, we serve the warehouse automation segment where, frankly, we cant hire people fast enough were seeing strong double digit growth we saw the full spectrum in terms of the segments that are doing well and segments that are doing less well. We dont lose a lot of sleep over what any specific end market is doing because were going to continue to innovate and do well over the long term darius, sometimes when ceos talk about how theyre Technology Companies and using soft wear, blah, blah, blah, my eyes glaze over. You have been effective in it because you have real examples you can point to last month with blockchain you rolled out a new application that will allow you to digitize paperwork that shows when you serviced either airplanes or parts of airplanes along the line can you talk about that and explain what that means in terms of productivity . Yeah. Thats one example that happened to use blockchain. We try to stay away from the buzz words customers dont care what technology they use. They care that they get an end product that works thats just one example. Yesterday, as a matter of fact, we launched a new solution which leverages some of the Security Technologies that we have in place that will help employees return to the workplace so it will measure things like whether there were pp e, social distancing and so on were using fairly sophisticated ai and Machine Learning technologies i think we get too wrapped up in Technology Rather than what does the technology do and how does it help society and our customers . I think our install bases that we have, we continue to innovate our Healthy Buildings offerings, the recent things were doing. Helping stadiums reopen. Helping workplaces reopen. All of these are offerings that we bring to the market some of the Aircraft Solutions that we brought ranging from the very simple, which is pp e kits to ultraviolet lights which will disinfect the cabin space. Even more sophisticated through the Environmental Control systems that will further take particles pathogen particles out of the air we have a whole range of solutions that were launching and we dont talk about it as ai, blockchain, Machine Learning and theyre technologies that we dont get the Technology Recognition that i think we should. Weve been trying to figure out what the workplace of the future looks like given all of the extreme changes in the last six months working from home youre on the front lines of that as you mentioned, trying to make sure that office Filtration Systems are back what can you tell us about what you see and how much demand there is for that product . When you think we will get back to sort of more normal life with the aid and assistance of some of these technologies . The demand is quite high. We anticipate our bookings will end up in the hundreds of millions of dollars, the a least in the u. S. , people are starting to think about return to the workplace. We have the nfl kickoff and well have stadiums at 0 to 10 capacity were working with a lot of different customers to create that safer environment that will help them return to the workplace. I may be a little bit have a slightly different view than others a lot of people talk about the workplace of the future will never be the same. People never return to the workplace. Speaking personally, i am looking forward to returning to the workplace. As a matter of fact, im in the workplace right now. Probably the only person here but being around your colleagues, having a social network, meeting people and building a company culture, introducing new people to the workplace, creating the informal networks, having a social network which is so important in any business, i certainly do hope we return to the past enhance it use it differently certainly digitize it more which is the journey weve been on and make much greater use of the tools and the Digital Tools out there. Im one that at least i hope we can return to the old workplace too m too. All of you see each other through the use of the computer, and thats just not the same no, its not. I think we all miss each other darius, i want to thank you for all of this. Congratulate you on 100 years as a Public Company you have a lot of things that are happening. Thanks for your time today. Thank you very much joe dow component, dow now positive nicely so. And i guess it was about 15 minutes ago remember maybe 20, maybe half an hour, the nasdaq had turned positive. The dow and s p. What will converge will the nasdaq join the daubach into positive territory. Its turned positive and so has the s p. We want to get back to the story that broke citigroup, this is the way to talk about it. The next ceo you should say right now, this is the first woman to ever run a major bank on wall street. Shes going to be replacing Michael Corbat who retire in fe. He has served as ceo for eight years, a total of 37 years at the firm frazier has been at citi for 16 years and currently serving as president and ceoof the Global Consumer bank. She will join the banks board as part of the succession plans. Citi shares, we can show you what that chart looks like right there. But a historic day in many regards on wall street as the glass ceiling, if you will, gets shattered among the big banks. Joe . All ight. Thank you, andrew. Lets get to cnbc headquarters, jim cramer joins us now. You can opine on that, jim, but i want to start just with Something Different that i was seeing because we talked about Stan Druckenmiller and those comments yesterday so much we focused on the raging mania, but he said something about the next three to five years in terms of all the monetary stimulus and fiscal stimulus and how that could make it tough sledding i always think three to five years, god, america is so great and technology is so great and i always hate to hear were going to do 5 or 6 s p if were lucky. Do you think that weve done so much in terms of, you know, monetary and fiscal that weve got some real guy jesting to do in terms of all that free money . Well, its why i always recommend people should have 10 gold, i actually think the gold stocks this time not just the gld or the bullion are very interesting and i like barrick dr. Mark briscoe has put together an Incredible Company i think stan is right on about that where is the money going to come from i think a lot of people are worried about that so i have to take a more muted view and share with stan longer term its going to be picking individual stocks that are going to triumph over that i think we printed too much money and we had to because we had to avert a depression. So we have to pay the price of averting depression. But i dont want to be bearish, im just saying i have to be a little more muted because, wow, hes right hes right we did fiscal we did everything necessary to avoid a depression and i applaud that. And were dealing maybe with hopefully we get beyond this with a vaccine at some point, but we have that to deal with, too, what could be an extended, i dont know, influence on youve mentioned, i saw you tweet this morning about just indoor spaces, how long are indoor spaces just going to be tough to manage oh, geez. 25 the restaurants i talked to and i talk to a great deal of them, people are just going to lose a lot of money. There was a restaurant that opened in june in new york city right in an area where they they can be outside, they can do a lot of tents, they can do the heaters that becky talked about, but in the end i think andrew is right, the world is going to be very different and its one of the reasons why darden has been a great stock, why chipotle has been a great stock they can withstand it. The Balance Sheets of most restaurants are terrible. Gyms. I dont know well see. Peloton yeah. Exactly. All right, jim, we will see you in just a couple of minutes. Over to you, beck. Thanks, joe when we come back, hoemd elerian will join u s. Im hector. 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. Welcome back to squawk box. Citi groups ceo Michael Corbat stepping down from the company, retiring jane fraser is going to become the new ceo at citi group. She is the first woman to ever run a major wall street bank and some of this had been anticipated to some degree Michael Corbat will retire in february he served as the ceo for eight years, a total of 37 years at the firm fraser has been at citi for 16 years and currently serves as president and ceo of global the Global Consumer bank she also joins the banks board. I want to bring in Mohamed Elerian of course allianzs chief economic adviser good to see you, mohamed before we talk markets and maybe some data points that just came out i wanted to get your initial reaction to this news. Historic to some degree on wall street historic and wonderful. I think the more role models you have out there the better. As a father of two daughters i can tell you that they really look to these things so thats a wonderful move by citi do you know jane . I do not. I know mike really well, i worked with mike back at solomon and its been amazing seeing his tenure and i think its great that hes handing off to jane. Everything i hear about her is that she is going to be a wonderful committeo for citi. When you think, though, about the larger context, are you surprised that there hasnt been a woman at the helm of a major wall street bank ever before you know, andrew, im not because im very aware of all the unconscious biases that operate. There is a great book if people havent read it invisible women that talk about how a world made by men, for men, continuously frustrates women. So, no, none of this it doesnt surprise me. What im pleased about is the amount of effort thats being put to try to break these unconscious and conscious biases that have resulted in such inequality and not just gender inequality, but broader inequality and when you think about citi as a bank, citi has transformed itself, frankly, since the financial crisis what does this bank look like you to Going Forward i dont know how much youve spent studying this, i know im sort of asking you on the spot. No, look, whether its citi, whether its jpmorgan, u. S. Banks are in a really favorable position right now and they have been increasing market share across the board the only question that we have is how do we feel about the big getting bigger and its not just in banking, it is in technology, it is in sector after sector where were living through a period where the strong are getting stronger and the weak are getting weaker. And the Economic Data suggests that this trend will continue, so its great in terms of national competition, its not so good in terms of what it means for productivity and efficiency. Well, thats a real question. Do you think it really isnt good for productivity and efficiency i mean, are you ultimately not a fan of the big getting bigger it i point . Im not a fan of a world which is in a disorderly fashion doing two things, one, seeing more concentration and less competition, and seeing more deglobalization in a disorderly fashion. Okay none of these things are being planned or handled, theyre just happening because the weak are getting weaker and if you look at the data, the Economic Data and this notion of a k recovery, it tells you that this is something that we should be looking at because you build the momentum in an economy that gets more and more unequal and its very hard to reverse. Okay. Mohamed elerian, thank you so very much for joining us on what now is a historic day. Jane fraser becoming the ceo and first woman to ceo of citi group and first woman to run a major bank on wall street. Make sure you join us tomorrow, squawk on the street begins right now. Good thursday morning, welcome to squawk on the street. Im Carl Quintanilla with jim cramer david faber has the morning off. Futures do go green here as jobless claims are roughly in line, stocks trim about a quarter of their losses from the last three days. Our roadmap begins with that roller coaster, though, tesla and Technology Continue to rebound. Citi, as andrew said, naming the first woman to lead a mega bank, jane fraser set to replace Michael Corbat in february and astr