Runs out and shares of Bed Bath Beyond are surging, the retailer reports comps of 6 , online sales soaring 89 , jim so earlier in the week, jim, and even last week you seem to be pessimistic about the prospect of a compromise coming together. Do you feel any different this morning . Look, i think the Airline Layoffs are looming large because with layoffs come a cut in roots, with a cut in roots is a pain point, but i think its the senate, we keep talking about mnuchin and we keep talking about speaker pelosi, but i think the senate is buying into the president s vshaped recovery and i think Mitch Mcconnell is buying into it which says why do we need more we have a v shape, its just Certain Industries that can be triaged. I know that the industries represent small and mediumsized business so im against that, but i would say in favor of the mcconnell position, at least if you are looking at the stock market, this set of earnings, now, that is not what they care about and i dont want to minimize the loss if you worked at goldman you were laid off today, if you worked at all state you have to feel pretty miserable, but i have to tell you, carl, when you look at pepsico, when you look at bed bath, when you look at conagra you start thinking what the heck is going on . The bed bath numbers were extraordinary, new management, admittedly one of the most poorly run companies around but it is big. When i look at the companies i see this common theme, if it has something to do with eating at home, something to do with making your home better, you may have to be a really bad businessperson to not do great numbers. Well, if you have a digital platform that works. True. And a strategy that youve already put in place prior to the pandemic or at least one that youve been able to work very quickly to establish. I mean, thats the key, right . Bed bath i dont remember them necessarily be any giants in ecommerce prior to this, jim. You mentioned of course and we talked about the struggles this company has had for years as it bought back so much stock at prices that are so far higher than now its a joke it was a creeping lbo on its way to bankruptcy. Should have been a spac. Yeah. Its 89 they have huge growth online, huge, but its starting from a very low base. They were terrible at online, this he didnt know how to do it, they were too busy trying to buy one kings lane of course, david, i have the company on tonight because thats what i do. That is what you do. Im a booker machine. You are. But the earnings per share, the cash on the balance sheet, the cash flow up more than 750 million, gross debt reduced, david, this one is real with 6 comp 89 growth with digital. I dont know, couponing down when you go there, david, you know that theres theres like 40 different hanger skus. Yes. Five different kinds of trash can for your kitchen, for your bath. Yes. Thats all being cleaned up the couponers are still there, i bring my 5. Right. Do you know what, david, its digital and its fabulous. They have a pretty big they have large stores. Right. Do they maintain and keep those or thats what i wonder walkin traffic is not anywhere near what it once was, unclear when that will come back to be fully what it was. I think of the bed bath not far from where i live, for example. Well, i think that this new ceo is from target, hes going to have to deal with which stores there were so many things poorly run, i dont even know if hes addressed how many bad stores there are, but what he has addressed is this multitude of incredible number of shop keeping units and how difficult it was and where they make the stuff and where they get it and the Gross Margins i dont know i mean, i think, david, they were they were trying to run the place into the ground, previous management. We used to talk about it a lot, why he. Previous management said they wanted to come on mad money, i said youre welcome. Then, i dont know, they canceled, which was probably smart. Smart nonbooking im going to go this weekend i am going to see, david, mine which is about two miles from me which, by the way, was the original bed bath, david. Okay. It was kind of a museum to bad management lets see how it looks do they still have the candy aisle everywhere theres more licorice in that place than housewares. Carl, it is going to be a feature today, even though it is still quite a small market cap as we know. 60 short, david. Yeah, a lot short and you always do some back to how much stock they bought back over years at far higher prices. Carl, how many times did i go up to the board with david at that relic that we used to work at and say to david, david, theyre buying so much stock its got to be a creeping lbo and it turned out to be illadvised which is another term for moronic. Its true, our mad dash it was a feature, carl, i remember it well. Sometimes i would confuse it with best buy and i really made a lot of good points best buy is looking good i meant to say bed bath. Its like cvs and cbs. Ticker symbols timers are very similar do you think a story like bed bath is a micro tell about the mac troe environment we have personal income slipping into negative territory this morning, savings rate has come way down, another 800,000 filing initial claims i mean, how much of that trade, that stay at home, you know, Home Improvement trade can continue if, in fact, household Balance Sheets look worse . Well, its strange because Restoration Hardware which is the high end is booming, you have way fair booming which is the low end, you have an outfit like bed bath picking up a lot of business, just housewares around the house, costco saying the same thing so there is a place where people are going, obviously amazon prime day is coming up, those are days, david here is what happens, it means you shop until you drop, so, i mean, since you dont shop, i mean,is it le me ask you something. Yes, sir. You are a teetotaler on amazon pry day im a teetotaler . I dont drink on amazon prime day im comparing that to alcohol. Okay. You are like a temperance guy for amazon. Oh, yes, that is correct. Im sorry. Yes, i am a teetotaler when it comes to participating in commerce is what you mean, other than paying restaurant checks which i try to do every single night and day. Who goes to restaurants i go every single night. Where outside of new york you have to come out sometime, my friend, things are happening and hopping. I dont know, president may call it a ghost town, im not sure, maybe around trump tower, but otherwise things are hopping. Carl, i love davids attitude, but lets say you take a place like barsay miguel, you are allowed to have 12 people, it is hard when you have 4 people working for you to have 12 people in the restaurant. Outside, jim, everything is outside. Okay. My entire neighborhood everything is outside. Starting today, though starting today 25 . Fantastic how many people am i allowed to have at my bar if i have three when i used to have 30 . Constellation brands, number three beer number three beer. You have corona, you have modella. Nobody is saying it is easy, that is not my point of course it is difficult. I thought you were running it in my face. Not at all. Those rumors of new yorks did mice are greatly exaggerate sd all im saying yes, i do not participate in commerce, i try not to, desperately not to, jim, however i seem to be at odds with much of the rest of the country. Carl, i think that going back to your original question, okay, i think october is a fulcrum moment, i think that when you see all state, did they really need to lay off all those people goldman is having a fantastic quarter did they need to lay them off are people using the pandemic as a way to be able to get rid of people and say, hey, listen, the pandemic makes it so we cant have them or is it one of those cases where you literally dont have a business so you have to let people go . Or is it that the people who have money like an amazon are able to hire as am many . This is the month where congress is going to have to start saying, well, wow, i mean, i guess people arent doing as well in the pandemic, but thats up to senator Mitch Mcconnell. Really, he is the man. Well, to your point, jim, i mean, q4 is always the quarter in which 2021 or the next years budget is starting to come into view and people think about operating leverage, its not a unique story, but challenger layoffs are 3 x today for the prior month year on year and thats something we dont usually see. Its one reason why the feds mary daly did say yesterday on closing bell that certain areas of the economy are definitely going to need federal support. Take a listen. We need fiscal agents to offer support to the parts of the economy that have yet to recover, to the millions of americans who are side lined and wondering how theyre going to pay their bills. So whether it happens next week or next month is important to those american households, but also really important to shoring up the economy. So now, jim, we have the airlines literally issuing memos to employees apologizing for having to separate workers from the company, but with the caveat that they might not have to or you might quickly come back if, in fact, a deal comes into place. It is amazing the game of chicken that they are playing in washington where it seems like that everybody is thinking the other guy is going to go over the cliff and give in, but when you see these layoffs and you realize that the widespread nature of them and the fact that theyve been a lot of companies have held off, that now it seems like, do you know what, this is the time, the pressure is going to be great, but, again, the pressure is on the Republican Senate because i think that when you see secretary mnuchin spending so much time talking to speaker pelosi, they have got to be close to something, but then when you look at, david, this is really important when you look at the senators and Republican Party who believe the president , remember, the president saying that we are back, were having a great economy, they have to contradict the president to vote for an aid package what theyre saying s mr. President , your economy isnt that good and i dont know whether they have the courage to do that. Do they have the courage wow, youre really asking me some tough ones today. No, i want soft balls, im sending you some soft balls. If history is any guide and im going to look right at you, you can look at me, if history is any guide, no. Thats right. Well, you dont want to be tweeted. Geez. No. Tweeted thats what the fear is here with a month or so to go before election day, its going to be interesting. But really, i mean, to carls point doesnt it come down to mcconnell trying to get them in order to a certain extent and the fact that he didnt seem to express displeasure with the idea of 2. 2 trillion yesterday. I had senator warren on yesterday, senator warren, outspoken, im still looking at you i dont know if thats the right thing to do tvwise. It reminds me when he used to be on the same set you used to have to turn. This is not just social distancing, this is like social mile running when you look at what senator warren said, i said why is the senate not part of giving 7 billion to minority businesses to keep them in business, why arent they doing it why isnt congress doing it . She goes, senator Mitch Mcconnell. That was it. That was it, yeah shes a woman of few words but i think shes a woman who understands the temperament in the senate and the senate seems to not recognize what Constellation Brands does at the end of their Conference Call and what they say in their note, i have them on tonight, minority businesses are being crushed, okay hispanic businesses are being crushed, but they are not stocks we dont trade them. Unless, david, they do a spac. Everybody has got a spac and a dream as i like to say. Boy, the people in robin hood they love spacs and they like optiones weve got more spac news today, too, we have hims coming on later, this he announced their deal with oak tree, playboy. Every day is spac day. Theres an etf. There is an etf that starts today ticker spak, we will talk more about that and we will get constellation and pepsi. Got some initiations of snowflake, draftkings, papa jos ba ia nuhn hmms and ahhs heard incall. 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 up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Watch palantir this morning, up in the premarket about 4 , of course, a day after its direct listing debut, although off of those intraday highs, jim, from yesterday, what was your take on the action i think people when they do these Reference Points, they dont really know, theres terrible discovery, horrible price discovery. There was a burst of buying that took that stock to 11. 35 and i swear, i mean, right there and it was very much in a rush, someone must have felt there was going to be a gigantic buyer coming in on top of that and instead the buyers dried up and the sellers searching for some level, david, the sellers dont even know how low to go. This is the direct listing issue. Many Companies May be looking at it, particularly if they dont have to raise primary capital, this seemed to have been a success and by many accounts it was, but to your joint, jim, when i talked to some of the people who were potential sellers, they didnt tell Morgan Stanley what their plan was. No. So they dont know. Morgan stanley is sitting there trying to match orders with people who are playing games is really what it comes down to. Yes yes, david. The buy orders is what they kind of know at Morgan Stanley, but they dont i made this point yesterday, they dont really know how much they have to sell. Imagine putting a book together when you dont really know how much you have to sell. Syndicate, david s in the dark, too. Yeah, so no one tells the truth when youre flying to put this book together and thats what you end up with by the way, the Reference Price is meaningless. Meaningless. And so we will have to watch the price action and particularly how you try to actually balance these two things because youve got selling shareholders but you dont know if theyre sellers and if theyre smart theyre not going to let you know. You know the Reference Point was supposed to be 10 bucks last week, not 7. 25 but 10 bucks. Carl, the idea that people come in and start buying this at a level of sales, 20 times, do they even know what theyre getting . I mean, there is a new audience of people, whether it be spacs, whether it be direct listings, they are so fascinating. Do you think the robin hood people called Morgan Stanley and let them know, somebody at robin hood says we have 10 million to buy . I dont think so. David, if they think it goes up im in a fight with about 100 people on twitter who say why dont you like spacs, they go up . Oh, okay well, palantir, it goes up the other one went up a lot, that was a good company, much too expensive. Carl, the valuations here, the valuations at all of these places unless they have faster growth rate are really out of control. Im not talking snowflake, snowflakes has got amazing revenue growth, no one knows how to rice that, but these companies palantir doesnt have that kind of growth i mean, why should i give it the same a better multiple than a workday, which is recommended today . And surface now. Why am i giving it better than adobe . Seasoned companies that know what the hell theyre doing that really have great management. Well, your point is good. Citi does take workday to buy, they are looking at 265, jefferies initiates snow at a hold saying its ahead of the fundamentals is your point specific to direct listings i just think that this one that palantir in itself has been around for a long time, wasnt making you know, not making money. I think that they may feel that they have a hold on, what, 150 clients that are unshakeable, im not sure about that. I spoke to marc benioff last night from salesforce, he has a new program to be able to roll up vaccines. I think if he decided to turn his guns towards something they do, partner with snowflake, they can go after palantir. Jim, to the extent that the commercial opportunity is the key growth platform authorize them, you question as to whether they can be as successful as they have been with the defense department. Precisely what is their edge because theyre very good at targeting terrorists. Terrorists does that mean theyre good at targeting people who might want insurance . I dont know. Me, neither. They say yet they are. Oh, okay. I say i am, too, im doing a spac. Whats your you should do a spac its free money. I would love to do that. Free money. I know. Do you know how many times ive been approached to do a spac of course i know people have told me, too got to do a spac. Do you want to do a spac . I said for what. No, its a secret. What should we focus on carl, thats what they say. Give me a sense of what the spac is about no it doesnt matter. Why should i join you were going to make a lot of money. Isnt that what the whole idea is, thats why they call it blank, jim, its blank for a reason. I write a blank check to my painter yesterday i felt bad about. You should have done a spac with him. We will take a break. Within we come back we will talk about what the quarter may for trend as we get into q4 and the month of october, seasonality and whether the s p can finally close above 3363 back in a moment what to watch on this thursday morning, we will keep our eye on developments regarding a stimulus compromise, but there are earnings from bed bath, pepsi, constellation, jobless claims and ism atht e top of the hour. We are back after a short break. Taking california for a ride. Companies like uber, lyft, doordash. Breaking state employment laws for years. Now these multibilliondollar companies wrote deceptive prop 22 to buy themselves a new law. To deny drivers the rights they deserve. No sick leave. No workers comp. No Unemployment Benefits. Vote no on the deceptive uber, lyft, doordash prop 22. One ride california doesnt want to take. Doordash prop 22. 20 associate cart pusher. Urly the different positions ive had taught me how to be there for others. I started out as a cashier. I mean, the skys the limit with walmart