Secretary talks to cnbc moments ago. Shares of Morgan Stanley are slightly lower, it would appear, ahead of the open. The bank topped revenue estimates by a billion on what was stronger than expected trading revenues and ev price war elon musk cutting the cost of teslas model s for a second time in one week, carl meantime, guys, got to take stock of this selloff here in the premarket, jim general take this morning is that the market is now catching up to what we know has been a problem in europe, and these lockdown restrictions in the uk and france are getting more serious. Dollar strengthening, some believe, because the situation here is at least better than europe on a relative basis. I think were importing their negative ty. I dont think it is going to last you cant make any moves to the positive until about 11 00 when you start seeing their markets peter out. It is one thing, it is very frightening when you read what is going on there. It is obvious it is a second wave it seems more viral. I dont know whether that true or not but the number of cases are daunting i want to warn people if you follow what theyre doing, and you sell our stocks because of what is happening right now in france, thats going to prove to be something you might regret. I was negative going into the bank period, because they never, ever do what people want they always seem to disappoint and, david, it has gotten to the point now where even the good ones, were Morgan Stanley, goldman sachs, which beat by, i dont know, 80 , ignored and now today were working about the madrid covid and paris covid doesnt make senses to me. Im at odds with it. Youre at odds with the fact that the market should be responding differently than the rise in cases . Or in europe yes we are not europe. Right 55,000 a day, at least that was the number yesterday i havent looked at what that was two days ago, yesterdays number i havent looked at todays, jim, but we are not exactly doing well. Unfortunately it is terribly consistent it is not people will talk to you about death rate, have interesting article these days as we Start Talking about covid long that there is Something Else besides the death rate we should worry about but what im saying is the fundamentals look at the goldman quarter. Study Morgan Stanley. Strong quarter at Morgan Stanley, well get to also 50 of return on tangible common equity. Wells fargo and citi were not good. No, jpmorgan was fine all the banks go down. Yes it doesnt matter. Goldman sachs, you know, you speak to steve scherer, the cfo, it is a rather remarkable quarter. One thing people have to recognize is the amount of the amount of business that is being done with zoom is incredible no face to face. Just zoom to zoom. And it is working. It is not supposed to. The expense structure is better, simply because people dont go anywhere i do want to get to that bernstein call on zoom later, jim. They go to 611 on their target way below where it is now. But zoom minutes year on year, shouldnt be surprising, but it is still astounding, up 30x, thats a reflection of our daily lives, of course, what happened over the last eight months look, zoom is a remarkable company. There was competition. Webex, cisco, competition. They didnt work because zoom is business to business, and business to consumer thats highly unusual. He is a 24 7 soul who is thinking every minute about how to make zoom into something even bigger how about this how about what he did with do docusign you can watch zoom and sign a deal well start seeing things that make it so zoom can be worldwide. Translation, like you have with google it is a remarkable product and it is working. Now, is this is this fastly a company that underperformed after being hyped up 20 by, i dont know, forces that are unknown . No this is a company that is very hard to value. 50 times sales it is very hard to value because the sales are exponential. Zoom is hard to value lets talk about fastly for a moment youve used it as a reflection of speculative excess to a certain extent and to the presence, of course, which we welcome, of the new traders in this market, individuals using the robin hood platform and others, by the way. It is a metaphor, darn it. Yesterday they report, of course, that their number the revenue numbers are not going to be where they were assumed to be because it would seem they dont name tiktok, but they make the assumption that it is, right well, tiktok is largest customer, fastlys platform usage of fastlys platform by the previous customers did not meet expectations right that was a preannouncement, a lot of people who are not in this business say what is the difference 74 million and now theyre going to do 71 what is the difference when youre valued like that, you have to do 81 to please people as opposed to goldman sachs. Always got to be does this does this reverberate in the Broader Market even though it is not that i think there are people who are reassessing right now what happened, how do these stocks get to these levels . And, david, you and i both have found it quizzical, the softbank calls, you mentioned them multiple times. He calls it barely a dolphin, but yeah, the softbank whale in terms of buying. Carl, there are some stocks, well go over them, im working on this fiber now. I dont want to play my hand yet this is the fiber, this is the free lance people who come in and help you with your website this thing is valued too high. I dont know how to value, i do not know how to value zoom and i do not know how to value snowflake other than the fact that, wow, are they good companies. What do you do there are times where microsoft in 1987, microsoft is, like, wow, i think this company is going to be really big intel, they dropped dram and switched to the 86 processor went to an astronomical pe, it was right, you have to grow into the pes. I think that eric will grow in the zoom pe. I dont want to for my travel trust i wouldnt buy it. It is too high yeah. No, thats what makes some of these early cycle stories, jim, so difficult, is the multiple by very nature is elevated relative to history and it takes time for the business to fill that gap. I am curious, though, if youre convinced that what is happening in europe is not going to replicate itself here, why the fresh highs on zoom today . Why fresh high on peloton for the second day in a row today . That is the second wave look, peloton, they need a new factory, they cant meet it. Zoom recognition that were not going back so whoever who doesnt have zoom there is a lot of people there is really two parts to this country the part of the country that needs the stimulus and the other part of the country who say im going to put zoom in my country house, not just in my house. There are people who are buying homes at a level that are extraordinary in this country. There is housing is doing well autos have turned around so there is a lot of good but those people are doing it remotely and people are doing remotely i find david, how often when you an executive wants to talk with you, for our show, you try to get background, how often do they send you a link now versus picking up the phone . It happens. People want to it is funny, conversations that would have ordinarily taken place over the phone, so to speak, now people want to see you. I dont want to see anybody. I just do the audio anyway yeah. You do . I always do the zoom. I love it. You love it i think it is fantastic i zoom everybody i just listen i dont know the way things evolved, it use to be you pick a phone up and call somebody as a reporter and you got them or you didnt now everybody wants to make an appointment to talk. It is ridiculous they send you links. Ill send you a link, we can talk i had a work dinner last night, i had a good time it was good, it was social distanced. There was nobody around me i was ice cold it was everything i want thats what i want, carl no one near me. Thats what we all want, jim. I know. I dont want that aerosol spray cough coming in my direction. Nick saban when you read the nick saban, dont you say to yourself, mm, anybody. Nick saban, the athletic director, greg burn, lsu florida has been delayed, schefter has a fresh tweet, the falcons according to adam closing their facility. No no adam and i had we have gauge. Dustin johnson, christiano ronaldo, it is impossible to trap. It is every day the nfl changes when it is going to have a game im surprised amazon said when theyre going to have it they should say, listen, were going to have an excess game played on the tuesday. They can get the tuesday games. I cant believe schefter had that we were talking about well, see, we went back and forth today, but mostly about how Christian Kirks a good matchup against the jaguars. All of this doesnt add up to necessarily another lockdown coming here in the United States, jim. Thats not happening. No. Its not and thats what matters. I think, carl, people are missing that there will be no lockdown and anyone who this is theyre not talking about a lockdown florida is look, i just got the right to be able to go it an eagles game yesterday. 7,000 people to have the right to cough on each other and, you know, thats what people are doing theyre opening up yeah. Tom lee has a piece out this morning, jim, talking about how hard it is to contain, he does say that he thinks 350 cases per million acts as a governor at that point, policymakers panic in his words, citizens start masking up, and case loads per capita come down elasticity on this thing is not infinite among policymakers. No. Look i mean, it gets Science Fiction like as it kind of gets out of control, and all you want to do is get it last you want regeneron, you want a couple you want to take two regeneron and go back. Thats a reference to the president calling for the fabulous company like it is a pill regeneron has to give us more we have to get that johnson and johnson. That, to me, all that you mentioned versus if we hear that the j j issue is solid, j j is capable of doing a billion, okay theyre capable of doing a billion vials. We have to get that j j study on track. The eli lilly is capable of doing youre talking about two Different Things here, youre going to confuse people. One again is an antiviral you take if you got it, the other, the j j is a vaccine you shorthand things and sometimes people need to j j is the vaccine and the manufacturing for the vaccine continues in the hope they will be approved smat point in the not too distant future and youll have a available supply immediately to get out to people pfizer, moderna, j j, there is others we could have a number of Vaccines Available but between now and then, jim, the question is as it gets colder and see case counts rising in europe and in the United States what is the response if any or people are going to continue to pull back from Economic Activity or are we done is everybody saying, im going to put my mask on but im going about my business. Colleges and people are coming home. Thanksgiving will be a bit of a frightening time when they come home but here is Something Interesting about the nfl. Do you know that almost none of these cases, carl, are symptomatic. Almost 100 asymptomatic which means that people feel bad for a couple of days, but they just dont they are having a hard time taking it seriously because theyre not really sick. The rest of us get sick, those people are supermen. But it is really hurting the nfl that these people do not show any signs of covid and thats whats going on. Yeah. Yeah guys, a lot to get to this morning. Well get to Morgan Stanley as david mentions ual, mcmillan from walmart talking about black friday stimulus and tiktok even and well talk more about facebook and twitter as they apologize in some ways for their restrictions of content regarding that New York Post story. What if you could have the perspective to see more . At Morgan Stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are Morgan Stanley. New york times with a story last night talking about the day that larry kudlow came on our air february 25 and said the covid pandemic was not contained airtight, but pretty close to airtight as the times now says that they were the administration was giving private briefings to some investors and people affiliated with the Hoover Institution that in fact it was not perhaps airtight all this leads back to an interview that jim had with david tepper from apalusa. Were trying to back engineer it ourselves now you got to try to figure it out. Ruined the environment, the setup now. It is brandnew. That is important, you talked to joe, good time, it is a game changer. Isnt it you have to be careful because there may be a game changer. You got to be cautious two weeks ago, before the virus, it was one thing this is a different environment now. It is what it is jim, on twitter, you called the article strange. Yes well, okay, because there is some implications in the article. One is that somehow tepper might be in the inner circle of the president. I dont think you can be that because on may 15th of 2018, he called the president the father of lies, and here is an interesting term, he called hum a demented narcissistic scumbag. Thats usually not something that makes it so that youre close to the president it made it sound like hes getting the call the narcissistic i use that term once, i wont use it a second time, but i get in trouble sometimes when i use these terms, but i recognize that he gets a lot of emails, whatever, the reason he felt compelled to say what he said to me was i was on cnbc not long ago, with talking to joe and i was very bullish and sunsince i read this lancet article, feel compelled to tell the cnbc audience that i am not as bullish as i was when i was talking to joe somehow this thing has become that there is just vast conspiracy of Hedge Fund Managers who talked to larry and get the get the skinny and it is completely untrue it is david tepper, i dont know, did he get bad emails from hoover i dont know the idea hes with was going toe some sort of tie do you think the president likes those kinds of the president , when he gave tepper said the president gave not one dime to 9 11 or to Superstorm Sandy these dont endear him to the president. No, i dont believe mr. Tepper is a supporter of the president and the idea somehow he would be alerted to information that was available to them. By the way, i mean, larry kudlow, youre going to listen to lets be honest, how many times does he come on our show and said something he was on yesterday. Said something that the opposite of which is actually true i know hes an old friend. An old colleague i happen to be very fond of him. People want me to trash him thats what they want. They want my point is that if you are a Hedge Fund Manager or anybody, im not necessarily sure going to be listening to him and believe that whatever is being told to you is actually going to happen or be true. At that moment in time same way he was saying that it was all contained. And he said it again a week later when we challenged him on it. He works for a president who listens to his every word, they have dinner, a great deal together i have said over and over again, my partner for four years. It is called loyalty does that as long as you disclose it i would rather spend time talking about Morgan Stanleys earnings than about this story i think you eviscerated me. Who me to me, to my mind, i mean, david tepper can take care of itself it is what kudlow said to our viewers who dont have that kind of intelligence that is troublesome, jim i know hes your friend. Futures are weak well take a break and be back in a minute. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Yes, we are standing look at that i mean, were far apart. You couldnt spit and hit me. I know. If i do this, do you start get the heck away from me i thought we might wear masks, but it kind of reminds me of back at the exchange. It is your mad dash. You want to talk a little walgreens. One of my thesis is the quarters have been pretty good take a way wells fargo and citi, we had good quarters j j was a good quarter United Health was good walgreens was good walgreens. It is almost inconceivable because the death star just goes after walgreens, death star being amazon they made the number 4. 7 comps, they beat the revenues. They had a top line that went up 2. 3 , yeah. Growth in the health and wellness category. David, walgreens has a pulse a good example of what im dow stock, by the way, i dont know how it snuck into the dow thats crazy. I dont know how long that will keep up the performance has been horrible some talk some time back about could he take it private there is one of those dog things, were like dog like electricity. David, look at that. Thats one of the worst charts in the book. And i think that this this companys stock is going to go higher. Can they maintain it has been a long, hard road for them thats a really hard question they have gone a very different strategy than has cvs, now a health insurer, in addition to amazon prime day yesterday, right . So i ordered these unbelievably cool toothbrushes. Okay. I would have gone to walgreens for them, but, no, they come to my house, i dont have to touch anybody, the keypad we know from a study, the keypad is the dirtiest thing you can touch. I dont want the keypad. Everyone is faced with that. You think it goes higher, today and maybe for a while . Yeah, it has a good dividend, theyre not incompetent. Thats a real buy walgreens, theyre not as incompetent as they used to be there is a recommendation. This is actually not a bad shot it is kind of weird, but it is not bad. It is great yeah. As long as you stay away from me, im happy with it. When i said you eviscerated me, i was joking around. It is hard for me to criticize larry kudlow, but hes been wrong. Hes too optimistic and hes been too optimistic at times, but remember that sometimes the way leaders are. And he reflects the leader that is