tv Squawk on the Street CNBC June 4, 2020 9:00am-11:00am EDT
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he works at a medical group close to your home town. >> that's where can got my tests. >> great >> great place we have to go, though. great seeing you >> appreciate it >> you're welcome, and thank you to becky and thank you to you, too, andrew. anyway kidding. kidding. make sure you join us tomorrow "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber coming to you live we're coming off the highest level for the s&p post-covid, and although futures a red, jobless claims continue to moderate 1.8 million is the lowest in ten weeks. airlines and casinos continue to reopen the ecb expands their emergency purchases. oil just below $37 we're going tokeep our eye on covid news we'll keep our eye on the
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protests and the fallout from joer george floi, but the market and stocks are focused on economic activity, period >> we just keep getting good news it's good news off very lowered expectations whether it be cheesecake getting a lot more people than they thought or the airlines this morning. american saying good things. whether it be ebay pronouncing right now things are better than expected whether you talk a look at a lot of the companies that, you know, morgan stanley, gm, of course this quarter was the weakest, but maybe next quarter will be the strongest. we have a number of oil recommendations saying they have come all the way back. so the street is really bullish. after being very bearish you see a lot of price targets that were cut severely are now going back up. it's a kind of don't fight the trend where the most overbought we have been since 2009, but if you go back to 2009, we were up 11 on the s&p. we had great period after. people are fighting the tape if
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they're selling. how about that that's what they're doing. they're fighting the tape. david, you saw it yesterday with your excellent warner music interview. there's an ipo that people made a fortune on >> that stock up dramatically, over 19% as the day wore along and only got better. add the same time, as my day goes along and i have conversations with people who advise corporations what i continue to hear is companies planning for layoffs or planning to make permanent some of the furloughs that have taking place. just can't get past what i pick up during the course of the day and how the s&p is performing and whether or not we're going to have an unemployment rate that is higher than people perhaps seem to expect, at least judging and reflecting from what the s&p is right now or how these two things coexist i keep coming to you with the same question, and i don't know because then the answer you get from all the investors is it's just about the fed it's got to just be about the fed.
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just about cheap money nowhere else to go the usual. >> we have to break things down. this morning, for instance, royal caribbean, good company. they just raised $2 billion at 5% money now, royal caribbean doesn't even cruise. before the fed got involved, you would say that royal caribbean should be in chapter 11. chapter 11 you had 5% convert that is jay powell anybody who is in business who is a larger cap company can get money. and they can get money relatively good prices, and we know that's powell when i see what europe is doing, we say okay, they're doing their own malcolm x, by any means necessary plan, but it's so hard to fight the fact that any company can raise money. and that we have only had hertz, and that was of course, a little self-inflicted in what may be a great depression, great depression in
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terms of employment. only hertz has had to file chapter 11 i don't even know if they ended up being chaptered they might beback in business now. carl, i have to tell you, if you didn't know better, you would think happy days are around the corner, but david is absolutely right. i think everyone at the major banks is trying to figure out how few people they need to bring back >> after adp yesterday, goldman had a note that suggested the number implies significant rehiring and although continuing claims were a little troubling, you could argue that the jobless claims number shows exactly that, that people at least to some degree are being asked to come back to work. >> yeah, look, i think that when you see the notes, the notes tend to be, okay, business was down 60%, 70%, and now it's down only 25% the casinos, well, they were closed now they're only off, say, 30% from where they were
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and everyone is so happy that things are open that they tend to be taking stocks far higher than you would expect. now, we do have a lot of apologists come on and say look, stocks represent the future, but the fact is that maybe the stocks, if they represented the future a month ago, they got it wrong. who's right, who's wrong if they represent the future, what the heck were they doing all the way down >> it's funny you mention that because, speaking of about a month ago, it was may 13th that david tepper went on the half with the judge and said this was the second most overvalued market he had seen since '99 s&p is up 10.7% since then so was tepper wrong? was he talking a book? is the market mispriced? or a combination of those three things >> well, i happen to go and love david. he's one of my feech teachers at goldman, and i know he adjusted his view not my view to say he adjusted his view, but i just don't want him to be viewed as someone who
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necessarily got it wrong he has always been a person who adjusts. he was very bullish, for instance, until he heard about the novel coronavirus. and instead of just saying, well, the heck with that i'm very bullish, he pivoted and said it was game changer i think that looking, tepper is someone who when the facts change, he changes too he did get more bullish. and i think that one of the reasons why you could get more bullish is the banks stopped going down, and the banks, as you know, david, when the banks stop going down, when wells fargo went down 22, upgraded today, that's why i mentioned it, what you start thinking is, wait a second, deutsche bank says wells fargo, type to swap out of goldman to wells, maybe the pressure is off the system and maybe costco last night, i mean, think about what costco did. they instituted a mask policy. okay they have had to be risking, rolling the dice, everyone had to wear masks.
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associated, people coming in what happens they blew away the numbers there's pent-up demand everywhere and not a lot of resistance even to companies who want to wear masks, even though as we see in the south, masks seem to be forbautin >> agree and wells is an interesting company to focus on because you and i were having a conversation about it when it was an over 9% yield and the market value i thing was hovering around $89 billion. obviously, the stock down, what, 36% over the last 12 months, but jim, this market seems to be saying we're going to have a vee or in the midst of a vee recovery, when i still don't find that many people in the business world who believe that. now, that said, typically ceos tend to be bad at prognosticating. we can all see that from the business council and their surveys every year but we're saying the market seems to be saying a vee numbers next year are not going to be what they were in 2019, so
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clearly we're willing to accept a higher multiple. i understand the s&p is weighed very heavily by the huge market caps of microsoft and apple and amazon that are -- and facebook, that are doing so incredibly well but i don't know we're also heading into an election season and we have huge social unrest in the country i mean, who knows? and we're going to have an unemployment rate that's still probably going to be double digits by the end of the we're at least trying -- all the people on twitter are going to be like, you're so negative. i'm just trying to embrace what you hear >> i said i was going to take a break from twitter today because i said something that was quizzical about one particular stock, and suddenly, the hoards came down on me. >> you get it worse than anybody. >> the speculative nature of this market is extraordinary, too. every day, they seem to -- we used to call it they're running a stock, and i'm not going to mention the stocks they're running because that just
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verifies that we see what they're doing. but i come back, and i say again, while we were talking, ebay preannounces. you start saying, if ebay is doing well, perhaps we have to take a look, and then you go to shopify, and where have shopify on tonight just a second, let's raise themu see the apple numbers? and then you say, fedex raised prices, i guess demand isn't so bad, and spirit air is tripling prices out of florida. i give up. go buy delta >> we'll have phil lebeau on later this morning talking about the airline schedules that are getting more and more aggressive virgin atlantic is going to start running routes back to jfk and orlando. david is right, jim, in terms of political risk, we saw the mattis statement yesterday about the president. just a remarkable statement to come from a former defense secretary. we have snapchat no longer promoting the president's snaps.
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obviously, there ongoing conversation about twitter and facebook and the protests themselves. i mean, at some point, will the market price it in maybe not because of economic activity, but the prospect of a biden win. and as we have said before, the implications for what taxes may do as a result >> well, general mattis, i went to hear him at his book party given by mayor bloomberg, and i spoke with him after and also when he spoke. i said are you going to say something about your period with president trump? he said absolutely not that's not my job. i'm not going to do it he said it several times obviously, he did say something this time. i know a lot of people who like me respect general mattis, particularly for what he did with battle for fallujah you would think maybe that could resonate with someone. i don't know if it will resonate because it seems there's a lot of teflon on everybody when it comes to trying to figure out the unemployment, let
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me give you -- i'm going to give you an off the wall thesis as someone who loves small business and medium sized businesses. who is left after they deemed so many businesses nonessential are the companies that are viewed essential and how well have they done how well has lowe's done, home dep depot, patarget when you wipe out the competition, maybe you should raise the multiples of the companies you didn't wipe out. i'm searching. it's not easy. >> no. by the way, in the things that carl mentioned, of course, that we have gone over this morning, i think we haven't really talked about the pandemic i think that's still going on. >> pandemic. >> 1.8 million cases 107,000 deaths and still adding new cases at roughly, again, it's come off a very low basis in the states going up very low, but i don't know not to mention, of course, the stuff with china is getting worse and worse every single day. i'm just saying. that's all just putting it out there, guys. >> social distancing, are you
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seeing it? we're all anecdotal, but social distancing, maybe it was sirx feet now it seems like it's three feet masks, i carry one people think it's halloween. that's crazy but yeah, david, you're right. you mentioned a litany of things that are bad, and i caught myself yawning and then realized i could be on tv >> i know. nobody cares that's all right great. good >> guys, there's a lot to digest today. we're going to talk more about the casinos. obviously, as vegas has its first reopening, and occupancy rates better than expected it's the anniversary of tiananmen square we're getting headlines regarding protests in hong kong. and the markets themselves the s&p with its best 50-day rally since we went to a five-day trading week. we're back in a minute when you say what you're in the mood for,
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midnight, instead of going home, cinderella showed up for the party. downtown vegas casinos, the d and golden gate were among the first to reopen with strict social distancing and sanitation rules in place casinos are beginning to throw open their doors again, after two and a half months closed reservations came flooding in with such unexpected demand, mgm and seizer's reopened third properties each. mark bath is bringing his wife and daughter to wynn las vegas for long weekend, hitting the sports book to bet on horses at the belmont, and taking comfort in safety precautions. >> also comfortable because i don't think as many people will show up, so you know, we'll take advantage of the pool and the whole area >> moody's forecast gaming earnings to plunge some 70% below 2019 levels in the next 12 months partly because of social distancing limiting capacity
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but of course, so many people have lost their jobs and their income, guys, that they will be less likely to splurge on gaming another issue here is the willingness to travel. exclusive new data from cnbc and change research shows this could be a potential problem for vegas casinos. 60% of the people surveyed think taking a flight right now is unsafe 37% think it's unsafe to stay in a hotel. but of course, reopening can't happen fast enough for las vegas workers, with an unemployment rate in april above 33%, by far the highest of any major american city. and normally, the driving crowd accounts for about half of las vegas visitation for now, they'll likely be driving the bulk of the revenue. though tourism officials expect increasing air travel through summer carl >> contessa, let me ask you a quick question i think that you and i both know matt maddox from wynn, and it's
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important to point out, he didn't openidally, he hired johns hopkins, the best. they're not rolling the dice when it comes to safety. >> number one, he had a lot of experience because, remember, they had to shut down macao before any of the shutdowns happened in las vegas and reopened with a lot of regulation there two, he was the first ceo from a casino to lay out and publicly do so what his detailed plans were for reopening, how he was going to keep employees safe they have partnered with the medical center there in las vegas to bring testing on site at wynn las vegas so their employees are safe it was extremely detailed and set the bar so high for the rest of the casinos and gaming regulators to follow >> yeah, remarkable document when it came out and it's amazing we're finally at this day. contesy, we'll check in with you a lot today. thanks contessa brewer on vegas' reopening. opening bell in just about ten
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ebay raising guidance. the stock does appear to be poised for a nice move higher. >> it's pretty substantial, david. people were thinking they were going to make, say 73 to 80 cents. it looks like you're going to make $1.02 to $1.06. that's a big raise people were thinking 2.38, now they're looking 2.75 to 2.80 this is kind of the merchandise being terrific this is the kind of thing that gets the juices going. what people say is look at this. this is a stock that's been moribund you had noticed it the other day, it's been sneaking up this is part of the online phenome phenomena, people staying home and ordering and it just shows you that stocks that have been left for dead are very much alive and make people more bullish than they would be otherwise >> yeah, remember there's been a change in ceo. of course, you have a new ceo in there, used to run walmart's e commerce business. you have the classified.
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the classified business still for sale that auction going on. trying to get an unidate on that because we're getting into june when they expected to potentially get closer to an end there in terms of finding a buyer. then they had the great sale of stubhub, don't forget. talk about timing and getting lucky. a couple months, and they wouldn't have had anybody buy that thing >> and i thought they didn't get enough because i was looking at live nation. all the comps, it really didn't matter once you decided there should be no entertainment in sports, you don't want to be the ticket broker for no entertainment and no sports. but hope springs eternal, david. what a nice quarter coming >> yeah. and a big move up in the stock, of course, as we get closer to an opening bell, we'll keep an eye on ebay shares perhaps a 10% gain what's in store for the overall market we'll have that when we come eng llig mut opinbe ehtines away.
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african-american on the board, and that, i think that pressure in that area can help to speed up progress and transitions for companies. and starting from the bottom as well, but i think you really have to start looking. we have to start looking more seriously at board composition and insuring we have the presence of difference on the board. a direct voice on the board. >> that's laverne burns on closing bell talking about solutions, and we heard solutions about training and hiring, but you can't leave board composition out of the conversation >> you can't, and it's not just minorities women are radically underrepresented in general on boards i think the boards, there are boards that are just basically the bastion of the old days, all white men. and i think they have to be called out for it. i think it's our job to do so.
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at one point, we ran a company called boardx, which is similar to a company we're going to be interviewing today, and i was astounded at how many companies still had all white male boards or boards with one woman, no minorities, that sold to -- sold in industries where the customers had minorities represented. it's also bad for business is what i'm saying. it's shameful, but it's also bad for business i don't really get it other than it's the old way and the old way of our parents and grandparents i wish that had gone away. i thought it had gone away david, you and i talk about this didn't you think certain worries had gone away? >> you would like to think so, but we have learned otherwise. your point on boards is a very good one sometimes we seem to cycle into that, then we sort of move on from it. but diversity on boards, i think almost every study shows companies benefit from it. even their share prices and their return to shareholders
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benefits from having diversity on the board and it's so important. there are still quite a few boards that just do not reflect our society at large they just don't. >> it's very disappointing but i think that what happens is it's really up to us to point it out because they skate carl, who is really protesting i think maybe after this terrible incident in minneapolis, maybe it's time to open the file. take a look at how the companies have done. and call them out. why not? they're wrong. we should call them out. >> yeah, i mean, others have pointed out, i think tom friedman the other day said minneapolis where he's from has actually been a bastion of progressive american companies like target and others, 3m, who have tried to make real strides. you would want to see that continue in companies that are headquartered in other cities as
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well but i think it's been impressed, jim. arne sorenson from marriott earlier this morning with his blog post over the weekend, and it's clear leaders of very large companies, even those that don't have large african-american constituencies or employment bases are thinking hard about the issue. >> so good you mentioned that. i find ceos have become the consciences of america even if the market itself has no conscience there's so many ceos speaking out, and they're united, speaking of general mattis the ceos said we have not heard any ceos come on that i have heard, maybe they have, and said we have to condemn both the violence and the protesters themselves i have found that the ceos are particularly open versus what i used to hear when i was much younger toward what the protesters have to say and are sympathetic to what the protesters have to say something again we have to stay on a lot of these ceos used to be afraid to comment.
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arne sorenson, i used to think he was a lone brave person i think he's inspired people to talk out he's sensational a sensational man. >> there's the bell, guys. at the nyc, mgm resorts international celebrating the reopening of the bellagio and the mgm grand. celebrating the ipo of technologies we'll talk to the ceo in a few moments. on vegas, talking to contessa a moments ago, we have the flight schedules from american and united we can't forget about orlando, which continues to reopen, and liesman has this great dashboard of indicators looking at yelp store openings new infections baselines going back to march and january, and you're looking at some of the best numbers on a relative basis we have see so far in this era. >> no doubt things are better. i think one of the things that has happened, i was interested
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to hear what contessa said about flying because those numbers don't lie. i have been checking on my own about flights. and there are additional flights being added every day. they do not add flights, i believe. the one thing i find is very interesting, guys, is this quarantine policy that the united states has where if you come back from overseas, it's two weeks self-quarantine, that has been, and any country that quarantines, that's been the gating to international where they make a fortune. i'm waiting to see if our government decides to go easy on the two-week quarantine, maybe you think it shouldn't, but that's been a major reason why tourism has not opened up. go to italy, come back, you have to self-quarantine, guys >> is anybody keeping an eye on that, though that's just the honor system, jim? >> i don't know. i was going to go and i felt if i came on tv, people might say that i'm not quarantining.
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is it an honor system? i think there are people -- anyone who goes knows the policy, because your travel agent tells you. what it does is basically say you have to take a three-week vacation there's not many people in america who can do that. maybe you can self-quarantine, working at a home office maybe is considered self-quarantine. maybe that's how you get around it, but i think as long as there are quarantines, there will be people worried they'll be seen going places and doing things, and if you're flagged coming back from a foreign country, you really don't want to violate any of the rules >> yeah. guys, a couple stocks we're keeping an eye on. at 8:00 a.m. or so this morning, i put a tweet out about the department of justice signing off on the acquisition of td ameritrade by charles schwab that deal announced on november 25th along with another deal, but td ameritrade shares are up about 4%
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schwab also up there's a ratio there, i think it's 1.08, and there was some concern about these registered investment advisers, many of which are on the schwab platform, and a good amount are also on the td ameritrade platform, but the doj apparently feeling that was not a significant violation in some way. no real conditions here, even though they did get a second request. shareholder vote coming up expected to close on this. they have been saying the second half td ameritrade or schwab put out an ak acknowledging the doj has essentially cleared it they don't say anything, but they're resting their case, so to speak, and this thing is going to close soon. >> look, i don't -- i think there's so many different brokers, i don't think this is at all like cell phones where i'm still -- unless there's big spending by t-mobile and sprint, i question that one. but this is a heavily competitive industry, and think about that, i got in, trading costs a fortune and you would
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never want to flip anything because you wouldn't make any money, and now trading costs nothing and you have an outfit like robin hood, disruptive with more than 10 million customers that truly makes it so you're not worried about rising prices. i think the justice department is on the mark on this one it is cheaper than it's ever been to trade in history pretty kind of cool. we have a lot of traders >> it is cool. >> a lot of younger people really bagging, gunning, and liquidating stocks it's a little disheartening to see all the $1 to $3 stocks people are gunning, but look, it's not my judgment if you want to try to make money and legal, it's fine, but it's not investing. >> guys, i mentioned, of course, november 25th. those hals yacyon days of 2019,, yeah that same day, lvmh announced its deal to acquire tiffany. it had been rumored for some time $135 a share in cash
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yesterday, i spent time talking about the possibility of lvmh trying to potentially renegotiate, get a price cut and we got a statement from lvmh overnight for us, but their morning. and here it is and let me give you some sense as to what really is going on here as well the statement was pretty straightforward, but there's an odd part of it the board of directors of lvmh met on tuesday, june 2nd and notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of tiffany and company with respect to the agreement that links the two groups they did go on to say, though, considering the recent market rumors, lvmh confirmed on this occasion it is not considering buying tiffany shares on the market nobody had been talking about the possibility of them buying shares on the market, at least not for a couple months. that was around, and in fact, lvmh was investigating the
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possibility initially when we saw and were visiting the lows and the broader markets back in march, and tiffany was trading well below the $135. the idea being that, well, maybe they can at least cheapen it for themselves by buying some stock. right now, they're not even in a position to do that. tiffany knew about the board meeting. they shared material nonpublic information on their current financials with lvmh's board, which would make it even impossible for them to consider it, but it was an odd addition here to this statement that basically just continues to fan the flames of that possibility that lvmh would try in some way to rest the price concession or even say we're not doing this. now, i can tell you that on the tiffany side of things, people familiar with their thinking tell me if in any way, shape, or form lvmh tries to propose a price cut or anything else, they're going to go to court a contract is a contract this one seems to be fairly tight, although, again, in these
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matters there's always questions as to just how tight, but they will end up in delaware. now, is that just a threat or is that the reality we'll have to wait and see but it's very much unclear exactly what the man who runs lvmh, the richest man in europe, of course, is truly thinking here, other than the possibility of sort of taking things slowly, seeing if these guys breach any covenants at all under the merger agreement and/or seeing whether there's a possibility of a price cut. but i can tell you that at this point, the tiffany side, first of all, has heard nothing about that they were aware of the statement coming out in fact, they need to be told about these potential statements and they were aware of it. they were well aware of the board meeting. they have not in any way received any notice of a desire to cut the price or anything else for the deal. and they are prepared to go to court at the first sight of that is what i'm told very much unclear whether bernard wants to be in court in delaware you know, these contracts, jim,
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left and right, people are just trying to say, don't worry about it it's just a contract come on. but we'll see. one can fully understand given the performance of the business why they would want to cut the price, but whether or not they're in a position to remains very uncertain >> the first thing i thought of is, is tiffany paying rent i say that because simon property is suing gap over skipped rent payments. we know gap can pay. i mean, they're a real company but yeah, you're right hey, it's rent do we really focus on rent isn't that a whole point, forgiveness? i would like to know, tiffany has very high rent places, and is tiffany going to have to renegotiate if lvmh doesn't buy. i know they'll litigate, but there's a lot of stuff in flux in retail that we don't talk about, including the inability of a lot of retailers to think they have to pay up. it is incredible to me how many retailers have skipped, and i know mickey drexler talked about
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them this morning. >> including lvmh which apparently didn't pay rent in certain areas. we know they can i believe tiffany was paying it goes to the point if there's an opportunity for them to take advantage of, perhaps they'll try to take advantage of it. and in this case, of course, the question is whether the lack of performance in tiffany's business, given the pandemic, given everything going on, will give them some sort of reason. right now, they don't have one under the contract, they really don't, it would appear, and there are plenty of lawyers poringover these who can try to find some hole if you give it enough time, perhaps they do. maybe that's in part what's going on here. this statement did nothing to calm nerves. at the same time, we seem to understand what the game may be on the lvmh side we'll see. if it's possible, hey, if i can get a billion off, why wouldn't i try, right, jim? >> i don't blame them one bit. obviously, a contract is a contract, but i would love to know who the lawyers are here, because that would often
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determine, we know sometimes the lawyers get it right, david. right? >> yeah. well, listen, that's why the lawyers are important in drawing things up. this contract is a pretty tight one. in this environment, there's a lot of concern about existing deals. we have talked about as well about simon, the contract of which is seen as just as tight as could possibly be it doesn't mean people or investors aren't going to continue to be concerned, as we watch tiffany shares languish. $20 below the price. of course, they're still a ways away from being anywhere near closing it it could be august, september in terms of the antitrust approvals and that's kind of slow moving including australia, where apparently they need approvals as well. carl, over to you. >> actually, over to you, jim. >> i'm fascinated by that tiffany because there's a tiffany near us downtown, and i always felt, wait a second, no one is really going there, but they have a great franchise with
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that box the robin's egg box. >> look, the ipo market is coming back. this is a really important reason why the bank stocks have done well. that warner music that david talked about yesterday, it's up again. we have zoom info set to go public this very morning, and wlee have ceo henry schuck joining us zoom info is not zoom video, although they are customers. so henry, first, congratulations. always a big deal. then tell us, how zoom info makes its money, because your company seems to be everywhere behind the scenes in what we call b2b situation >> thank you, item wonderful to be here wonderful to open the markets today. we're excited to be one of the first technology companies to ipo. what zoominfo does is helps business to business sales people and marketing people find their next customer. we do that through our platform that provides data and insights and technologies that help sellers and marketers identify
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their next buyer, connect with them, know what to say when they engage with them, and do that in an efficient and effective way and our clients range everything from large fortune 100 companies to small smbs. >> it's funny, sometimes you have to use a kind of in the news example of what a company does in order to really get an understanding. i want you to talk about an outfit called tencraft and how they were able to pivot and take advantage of the time, because they wouldn't have been able to do it without zoominfo >> tencraft is a great story of one of our customers they make tents, outdoor event tents for event venues if you're at the taylor swift concert, it's the big tent in the back the pandemic hit, and literally, every event on the face of the earth was wiped out. and tentcraft came to us and said look, we think we can make these tents suitable for hospitals and health care facilities to do covid-19 testing. but that's a completely different industry than what we
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have sold to we don't know how many hospitals there are in the united states, we don't know who the decision makers are there, we don't know how to get ahold of them can you help us with that? that's exactly what the zoominfo platform does. in the first week, they sold to a hospital in erie, pennsylvania, then new jersey, then texas they had the largest revenue month in the history of their business what we're excited that zoominfo is able to do, it's able to help smb companies and midmarket companies and large enterprises find the next customer in the most efficient way te tentcraft is one example we have seen arnold's home office furniture and silk home who were making home fabrics and office furniture shift and pivot to making ppe, and same issue, they're in a new market, and that's what zoominfo helps them do >> one of the things we love on cnbc are success stories we always think about michael dell in his college dorm
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really doing a fantastic job i think your background, this is a company that just didn't start yesterday. your background is one that is very inspirational to a lot of our viewers in a time that i find a lot of people are either despairing or pretty don on the country or various political issues why don't you tell us your story? >> sure, thank you, jim. i founded this business when i was 23 years old i put $25,000 on my credit card. with my cofounder, and we launched the business out of my law school dorm. and we went to market trying to help sales and marketing people hit their number and the business grew organically and profitably since then but i think today, you know, there's no way this business is where it is today without the 1300 employees across the globe who come in every single day focused on helping us get our number, helping our customers hit our number i stand on their shoulders today, and i'm pretty excited about the team we put together to attack what is a really large opportunity. but yeah, it was fun to be 23
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years old and starting the company while i was in law school >> as someone who has sold for a living and taught selling, i always felt if you had information, if you knew current information about what company and who the trigger pullers are, you could do quite well. but i could never get current information. how do you get current information for your clients the? >> we built a robust engine of millions of unique sources that come into a machine learning and artificial intelligence engine that's making decisions every day about what to publish or not publish in our platform. today, we cover over 14 million businesses and 120 million business professionals, and that data, like you know, jim, is constantly changing. companies are growing, they're shrinking, they're hiring new employees. they're getting new ceos, adding new technologies and removing old technologies opening new locations, launching new products, and that machine learning engine we built, that artificial intelligence is keeping track of all of those
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changes across billions of data points in real time at scale and that's how we're able to bring those insights to our over 15,000 customers >> even zoom video trying to find customers, they went to you, a fast-growing outfit it shows me the organic revenue growth, zoom has the best ever, but zoominfo's organic revenue groelth and sales growth is pretty good too, isn't it? >> we're really proud of the metrics we put together. we're growing the top line over 40%, and we're doing that with 47% adjusted income earning margins. which is rare to see in a tech company. what'strive driving that is this market engine we built, our sellers and marketers and account managers are now going to market on top of zoominfo and using our data, using our insights to find our next customer, and we're driving an incredible amount of efficiency in our operations by using zoominfo, and we think we can offer that to the broader market as well. we can offer that to every company that sells to another
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company as a potential client of ours that's over 700,000 companies across the globe that's a $24 billion total addressable market that we sit right in the center of >> and henry, one last question. i think it's absolutely true that people are saying, this sounds too good to be true how do these guys make their money? you make your money in a sticky way, don't you >> yeah, so our solution is sort of an annual solution. we have packages for businesses of all sizes but it's an annual or multi-year subscription that gives you access to our platform and our data and insights on your target market >> henry schuck, i know this is a very important day for you i thank you for sharing it with "squawk on the street. i wish you the best of luck. you have a very exciting company. >> thank you very much, jim. we're excited to be on the public markets today >> good for you. carl, back to you. >> all right, jim. thanks for that. >> so we're looking at losses to start this thursday morning. dow is down 120. and that's with a pretty sizable contribution from boeing on the upside we're back in just a minute.
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let's marshal our voices to make that happen. >> that's arnie from marriott. if you're looking to corporate america, it's not coming from one company like marriott in that case, but active at the business round table, and we'll see if they do something collectively on health care or training or employment >> look, nothing would surprise me i come back and say that some of the best leadership in this country is from ceos ceos who do a lot to try to change, try to use their businesses as platforms for social change, and i think what a lot of us would say is a positive and not divisive way. the emphasis on being divisive or not divisive after what general mathis said last night, those of us who revere him were quite taken aback by what he had to say >> yeah. jim, you've pointed out the
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differences between china's recovery and our ongoing recovery and certainly, marriott's case study for how businesses -- i don't know, do you say roaring back in china, but relative to the united states, you could maybe say that >> i remember seeing arnie at the super bowl he was telling me exactly how bad business was in china. all public information i was -- i know that a lot of people know that marriott is a great worldwide business and they had done a big expansion of china. it looks like it's paying off. there's a lot of companies that in the last few weeks have been saying to me, you know, china is not just back but roaring back al alibaba had really good numbers. nike is having good numbers over there. we don't know about apple. there's a trade. it's a good one. the autos were fantastic, up 11%. no one has mentioned tesla in the last 47 minutes.
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i think tesla could have a very good second half they have the shanghai factory if you haven't mentioned tesla, i think maybe you've become irrelevant and old >> it's been a couple of days. guys, we'll take a quick break here on the other side, got to get jim's take on fixed income as the enten-year is now yielding .8. back in a moment save hundreds on your wireless bill
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every day, all across america, we deliver for you. and we always will. let's get to jim and stop trading. >> i can't talk nkla, but american air is talking about demand reviving and again, i come back and say this is an industry that got oversold and look, i don't mean to be too critical, but warren buffett pretty much sold and created bottoms. american having much better numbers i think is good for american it's important the airlines survive and they're doing it >> and we're going to talk to
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doug parker in a little bit about not just the business, but the interaction he had with a flight attendant on a competing carrier in recent weeks. jim, really quick, ndx all time high, second day in a row and the ten-year at 80 basis points. we've seen stories about the threat of stagflation. >> i think markets overshot the downside now when things are up a fraction of what they used to be, people will pay up some industries completely have gone by the wayside and people want to buy the stocks betting things will be better in fact -- it's amazing the v is in the stock market, not the economy. >> tonight pelosi? >> yeah. i want to talk about this chinese ipo. another one coming and the need for maybe a state stimulus it's been great. the stimulus has been fantastic. it might run out soon.
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shop if shopify, i urge people to watch that etsy is on fire. and smucker, are we at the end of the stay at home trade? i don't know but it looks like after campbell's and this one, maybe we need to get more aggressive and go with american, and my favorite, southwest. gary kelley, wow, look at that horse. >> yeah. pretty incredible. jim, we'll see you tonight mad money, of course, as always, 6:00 p.m. eastern time jim has a great show this evening. in the meantime, welcome to "squawk on the street. i'm carl quintanilla with david faber and sara eisen coming to you live from separate locations. snap is trying to hold 1304 -- 3120 jobless claims, the lowest in ten weeks. still above 1 million at 1.8 lagarde, the press are going big, maybe even bigger than some expected >> the first place you see that is in the italian bond market
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where it was sort of quasi bailout for italy. she did manage to vise in terms of a bigger baa zook ka than was expected there's the italian ten-year yield this morning stocks holding onto recent gains. mixed. let's talk about that right now. joining us in this discussion by phone brent schutte, northwestern mutual, and oksana aranov. the mixed data is not great ahead of tomorrow's jobs report. and the stimulus appears to be great. is that driving the market here? >> i think the data is bad but less bad than it was the airlines reopening and the
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casinos, i think the markets are focussed on the fact that the economy is reopening the cases haven't spiked and you have a ton of stimulus around the globe going into the markets and into the economy i think that's been a positive backdrop the last few weeks. >> oksana, how are you watching this the 40 % in 50 days for stocks off the lows is it makes sense to you are you telling clients to buy it >> good morning. it's not making a lot of sense yes, we're recovering off the bottom our economy plunged to something like 60% of the economic peak in the second quarter that's the expectation however, as we recover off of that, incredibly low bottom, we have to go back to prepandemic levels of economic activity just by prepandemic levels of valuations that's where we seem to be
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firmly headed with the market. an economy headed back to 90% is not going to be good enough, because even in 2008 and 2009 in the terrible public crisis we have, the economy was functioning at roughly 99% of the capacity so i think optimism here is a bit premature. and to quote one of my colleagues at jpmorgan, v most likely stands for very unlikely in terms of a recovery being v shaped it's an opportunity to harvest liquidity to deploy it as things start to really be clear that creating supply meaning reopening the economy does not automatically deliver demand >> so where would you be doing that where would you be positioning right now? >> so i think this is a good opportunity to raise some liquidity. as a credit watcher myself, when i look at spreads in the mid
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600s in the high yield space and if you take out the distressed energy sector, it's the mid 500s, it's not enough compensation for a default scenario that's likely going to approach 10% specks are trading as if we're going to have a roughly 5% peak in default, and we're at 5% already. that's one area where it makes sense to harvest some liquidity and wait for more defaults to come through which they will more downgrades to come through. so far this year we've had 16 $0 bhl worth of downgrades. it's on the same as we've had over the last five years combined and on track to match 2008, 2009 so that definitely seems one part of the market where you could take some chips off the table and wait for better entry points >> you agree that the list of
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downgrades s&p said the list of potential downgrades is the longest it's been would you look to corporate credit as a sign that or would you look for a slowdown in the growth of corporate credit as a sign that equities are at risk >> that would make sense however, in the current environment -- >> i'm sorry -- >> being incredibly supportive, we've seen tremendous growth in generation of corporate growth a tremendous amount of issuers coming to market, taking advantage of this benign environment. i think it's going to be a little bit of a rigged, frankly, mechanism for the time being you can't revive the economy by unchaining supply. that's what this part of the reopening has been about we have to see what happens to demand two-thirds of american businesses say their cash is going to run out in under three months so if that demand doesn't materialize, companies are going
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to have a much harder time financing themselves in the market, and that could create a widening of spread and certainly will be a sign that there's more weakness in the markets. >> yeah. to you, brent, to that point, i mean, the labor secretary is not tape right now saying the unemployment rate should be able to drop below 10 by the end of the year the market's taking that as some sort of victory. >> i disagree on so many fronts. you don't have to recover all the lost jobs as the markets move higher, especially parts of the market that have been hit and reflect what's happened. like value stocks. if i take you back to the great financial crisis, the employment in america did not trough until 12 of '09. the jobs did not come back until 2014 but the market moved up.
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i'm not calling for 23% returns but i think it's sometimes misperceived about we have to get everything back to get the market to move higher. and valuation on some stock is high but not all on small and mid caps they're cheap relative to large caps and to me that's where the opportunities are. the more economically sensitive ads continue to reopen, and do so in a way that doesn't increase the co-vid cases. that's the wild card, but so far, so good >> if i may comment on that -- >> brent -- go ahead >> i just want to point out that as the 2009 crisis was, the recover of gaining back jobs happened relatively quickly compared to twun where the recovery was longer. we don't know what the trajectory is going to look
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like at jpmorgan we're forecasting that jobless rates will stay above 10%. that's roughly 14 million unemployed people versus 1 million when this began. with the american economy consisting 70% of it consisting of consumer demand, i think that is a really dramatic dropoff in the demand to really allow us to get back to valuations that existed prepandemic. i think those are really some pretty dramatic changes structural changes in the economy that are going to persist even if we do come out of the co-vid kind of danger zone, because the consumers going through traumatic experience, companies are rethinking their preparedness for future disruptions this is all going to maintain an elevated level of unemployment it will have dramatic repercussions for demand >> final word, brent
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>>. >> i listened earlier and heard about 1999 i want to draw one difference. i think it goes to valuation it's a relative tool to me people i advice have to put their money somewhere. back in 1999, the treasury was 6% today you mentioned .8 and .2. if the fed is going to exercise yield curve control in the future, where are you going to put your money to grow it? that doesn't mean it has to be a straight up line i'm not suggesting the market isn't due for a pause, but when you look at the future and the valuation, to me it's more of a relative tool and with yields that low, perhaps stocks deserve a higher multiple than in the past until we get some repricing of the bond market the other part i come back to a small swath of the s&p 500 it's driving valuation and there are opportunities and things no one wants to buy right now
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>> it's a good bull bear debate. it frames nicely what we've talked about thank you both for joining us. >> thank you >> thank you >> good stuff. when we come back, the american airlines ceo is going to join us to talk about what corporate america can do to solve racial and income inequality even as the shares of the company at the 1325, about a two-month high back in a moment
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our next guest says the recent looting in stores is a, quote, kick in the gut for small businesses as they try to reopen in the wake of the coronavirus pandemic he's an investor and adviser to more than 30 small businesses. good to see you. thank you for joining us we've talked to you and a lot of small businesses about the impact of the pandemic on business, especially those that didn't have access to capital like large public companies. now we have these riots and the looting. and as you point out, there's no government program to help compensate for that. >> that's right. there's no ppp for the economic disruption that's happening from the social side. but here's the thing the president's economic team has to get out of the bunker and start walking up and down main street they'll see business owners went from having a closed main street to a boarded up main street. the recovery that we're all hoping is going to happen around
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election time depends on one thing. jobs and here's the job with jobs that people are missing i think in washington d.c. what happened in march, april, and may was not just people getting laid off as a result of co-vid there was this massive right sizing that's happened among the business community business owners figured out they can do the same or more with less resources the baker can make the same number of loaves of bread with 12 people as 14 people even if the economy comes back, jobs are not going to roar back. when you're driving down the street and all you see is plywood, that affects your view of the future. when people think about hiring more people or capital spending, they're thinking about what is 2021, 2022 look like there's so much uncertainty as a result of what's happening with the george floyd protests that are happening. it's not just about george floyd, it's about systemic racism that creates uncertainty and then that baker is not going to buy that extra mixer and that
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baker who thought maybe i can get by with 12 employees, maybe 10 >> is it too glib to suggest that businesses leave cities, leave urban centers? the business owners have to make a living too >> of course and i don't think our cities are going to dry up. i don't think anybody thinks the cities are drying up this is an issue of how the pace of the economic recovery and what's going to happen is we are going to recover but we're not going to recover at anywhere near the pace that people think because of the forces that i just told you about. it's all about jobs. and by the way, when you combine high unemployment which leads to less consumer spending with a massive amount of consumer debt that we've never seen before, you've got the twin effects of those two things that are going to come together sometime around q 4 or q 1 of next year. >> professor, it's sara. you're the ppp expert. congress did last night pass
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some new changes, the flexibility to that program allowing small businesses to, for instance, spend less of the loan money on payroll, to make the payroll deadline last longer how significant are the changes? >> they should have been listening two months ago we were talking about it they made two significant changes which are important. one is they extended it beyond 8 weeks. it was fanciful to think that 8 weeks was enough, and they ended the nanny state where the ppp program said we'll give you money, but you have to spend it in an exact way. we're not going to let you the ceo or business owner decide how to spend it. they relaxed those those are significant changes. one of the reasons that the second round of ppp is only about three quarters spent, business owners said the rules are changing by the week and i can't afford to take on this debt if i don't know if it's going to be forgiven
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while i applaud the treasury department for making the changes, it is really sort of nine weeks too late. >> what about any deadlines coming due how long does this ultimately run, for instance? watching in light of the unemployment numbers we got today, another 1 .8 million people filing unemployment claims the bonus unemployment only lasts another month. what deadlines do we have to watch as far as the small business loans >> this is what goes to the point i was making earlier about uncertainty. we don't know what's going to happen in july, august and september for exactly the points you're talking about unemployment benefits. employers and people who need -- would be out spending money are going to be much more cautious that goes back to the baker who is only going to hire 11 people instead of 14 people those three people aren't going to get a job and because they think they might not get a job today, they're not going to be spending the kind of money they would this is contracting the economy. it will come back. the sky is not falling, but it
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is not going to come back at the level the president's economiced a vie vors are telling anybody >> i'm sure a lot of the folks you advise have had to deal with worker who is they would like to bring back but obviously are not coming back because of the benefits they're getting right now. the labor secretary says the idea of a bonus to encourage workers to go back to work is worth considering. do you think it's worthwhile >> it's an interesting concept and true i remember sitting in with a company that was doing a layoff. the employees thought it was not such a bad deal. it turned out they were going to make the more money the next day on unemployment benefits we have that problem this goes back to the nanny state where we try to manipulate people's behavior. we're going to pay you a bonus to get back on, and you need to spend your money a certain way and this hyper management of the
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company is not helpful to business owners who need liquidity and they'll get through this i know how to run my lumberyard. you don't need to tell me how to run it >> nanny state is a good way to put it at least a lot of our viewers think so dave, thank you for that we'll look forward to checking in with you again soon sara carl, time for our etf spotlight. today a look at the regional banks, ticker kre. erasing losses on track for a sixth positive week. the top holdings in the green pnc, regions financial and truist all trading positively today we'll take a quick commercial break. nasdaq 100 hitting an intraday high
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ahh, the weirdest. you make everyone around you crazy. people are normal and then they hang out with you and then they're jack nicholson in the shining. i'm gonna tell my mom you tried to drown me. it's an above ground pool. you're like eight feet tall. welcome back let's get to sue for a news update >> good morning, everybody here's what'shappening at this hour new orleans st.s quarterback apologized for saying last night he opposes kneeling during the national anthem. on instagram he wrote, quote, it breaks my heart to know the pain i have caused. jim mattis is blasting the president for what he says is
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trying to divide the nation and for leading the country without mature leadership for three years. president trump says mattis was overrated and incorrectly said he fired mattis when he really resigned sergeant properties is suing the gap over more than $65 million in missed rent payments. stores closed since the pandemic began. go to cnbc.com for more on the retailer's struggles and also a preview of gap's earnings report which is out this afternoon. we'll watch that one sara, back to you. >> all right sue, thank you former whole foods ceo and founder walter robb joins us on the other side of the break to talk about what consumer changes we're seeing as a result of the pandemic dow is now up two points a grandfather of 14.
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nationwide protests were largely peaceful yesterday after more than a week of civil unrest and months uncertainty during the covid-19 pandemic, many businesses are now struggling to decide the best path forward for reopening and solutions to the two american crises joining us now is the former whole foods co-ceo walter robb it's great to have you on board. thank you for joining us do you see a big shift in consumer behavior here we were just starting to see some green chutes as a result of the reopening of states, the demand that was there as far as what we're seeing now with the civil unrest across the country. >> first, a shoutout to the retailers who have stayed open this entire time a fantastic job continuing to serve their customers and their communities. yeah absolutely it's a difficult time to be a retailer and to be in business with the potential store
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closures and the covid-19 coming back potentially all those things that present real challenges. the protests, of course, are a proxy for a very deep concern in the country about where we are, and with not just racism but also kind of where the country is overall in terms of being divided. it's a challenging time to be in business, but also one where there's a chance to step up and serve your customers >> i know you've been sort of talking and giving presentations about how the world is going to permanently shift. and your industry is going to permanently shift as a result of the pandemic what do you think about seeing lasting changes to grocery stores and the safety of the essential workers which this pandemic really shined a light on >>. >> it did shine a light on it. it put the food system squarely in the headlights. and recognizing how essential it is to go to the grocery store and how essential the workers are that make that happen, but
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also on the supply chain that the difference between the restaurant supply chain and the grocery supply chain and the challenges also on the areas in which we need to work harder to make a safer work environment 100% we're not going back the digital switch, the adoption we've seen in digital and online grocery do the math, it's overwhelming in terms of the demand there and the changes i don't see going back to analog retail, but i think the changes have been made around first, safety first and foremost. second of all around layout and how you plan for the number of people in the store, how you merchandise product around even the economics of being a retailer folks are having to experiment i was at a store the other day the sign said we're out here doing business from 10:00 to 2:00, we're experimenting. some of the changes around what retail looks like on the other side, these are going to be permanent chips this we don't have a vaccine in
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sight. that's a line in the sand. i think the question is how do people feel when they go out shopping or go out doing anything folks are a little bit uncomfortable. i think this thing is slow and unfolds unevenly and businesses have to find a way to be agile and adapt and respond and serve their customers? cht. >> you mentioned the supply chain. we got to see some of the vulnerabilities there. certainly in the meat slaughter houses and the problems there. if we do have a second wave in the fall like so many medical experts are warning, is the supply chain going to be better prepared this time are they taking measures right now to prepare whether it's in dairy or meat or packaged goods? >> well, i think that's one of the things that's been exposed was the fact the supply chain was bifurcated between the restaurant world and retail world. folks are trying to figure that out. we saw for the first time i can recall people running out of certain products and that was true for other stores as well.
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resulting in the kind of reducing the number of items they offer and trying to tighten up the supply chain to be in stock. i would hope we've also seen obviously the safety issues that happened with respect to some of the larger production plants i would hope that any responsible retailer thinking about now preparing for future of the co-vid or future pandemics and has learned lessons about building redundancy in the supply chains. i think those things are happening so i think so. it's one of the challenges that showed up. no one could have anticipated the demand spike that happened we're talking about a surge that was in some cases 100% over what anybody had seen and it happened fairly quickly it's fallen back to hoarding and it's still online at 60% if you look at the earnings report to some of the public properties you're seeing the tremendous spike and really supply chain has not yet caught
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up with the online surge but i think it's something where the -- we're seeing folks adam the system is largely stabilized except in the protein area where it's shortage areas. do you realize that the protein demand, i'm talking about meat and seafood up something like 50% year over year as folks shifted off of restaurants not having open or available, they're gone to cooking at home. we're seeing a situation where ten years ago, maybe 41% of people cooked at home. now it's over 50% of people. they go out and buy the things they need and prepare their meals with their families. so it's put a lot of pressure on the supply chain >> although, walter, i mean, i don't need to tell you, people are cooking at home, doing the dishes at home they're not leaving their home how high is the risk of exhaustion of doing all of this yourself of relying solely on food at home and how much of a bounceback would you look for once it was clear that dine-in
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was possible again >> yeah. that's a great question. i think that you are seeing people reach the sort of end point of staying inside and they're sort of wandering out at the same time balancing their safety but i would expect that if you look at the nielsen data, some of the baking categories, 70%. you see some of the shifts for people rediscovering the joy of cooking. they're going to come back out being with other people, being in restaurants, being out in the community as part of being a human being. and we would expect to see folks come back. that's already happening in some cases. state by state, it's unfolding differently depending on the rules in the different states. i think people have rediscovered the joy of preparing a meal with your family. i'm looking at a data in terms of the categories that are selling. i'm looking at it in terms of the fact that retail going forward is going to be -- it's much less of an experience now at a store
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because you come in. you have a metering coming in. you have plexi glass shields up. the heart of retail was the one on one connection with the customer, and it can't happen right now the same way it's going to be some time before all that stuff works itself out so going to the store is not what it used to be you don't sit and have a cup of coffee and have a meal you get in there and get what you have to do there's much less trip, higher basket, but less trips the difference is they stay at home and cook. that's what the data shows clearly. >> that leads me to my next question at least in grocery, when you look at delivery and you look at pickup, how high can that number get relative to total revenue and what does it mean for store footprint? are we going to see stores shrink or are grocers going to try to work their way through this with the stores they have >> that's a great question we're probably less than 3% of penetration on online grocery
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and we all started i would put us closer to 10% and we might hit 15% this is where i think the tectonic shift that's happening in retail. i think you recall on the microsoft earnings they'd seen two years of digital adoption in two months and we're seeing 40% of americans now online grocery ordered. i think there's a point in there where we pass it they don't go back if they adopt the platforms in the east because it's convenient or they don't feel safe going out. we're seeing a massive shift and those that have the digital capabilities are either having to get that or it's difficult on the other side so i think the wholed in of grocery shopping and what it means has taken a shift here as folks have adopted the online o orders frankly while the traffic is down the basket is up, we still haven't been able to fill the demand for digital grocery
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delivery there's lots of options. the fact is that you do the math in terms of the number of americans and the number of times, the online slots are hard to get, and so we have a lot of capacity to build. and it caught us flat footed i expect the different companies offering that. the last economic -- don't work on that. there's the question of who is going to sort out the business proposition for that but the customers say they want it and the your job and business and retail is to follow and serve the customer that's what the customer says they want right now. >> yeah. and even with that growth, walter, and the fact that we've seen the trends, mackenzie put out now data showing even in the cities hardest hit by the pandemic, 7 in 10 people continue to visit stores for essentials and groceries and in states that relaxed restrictions, it's 8 in 10 people groceries are a thing where people want to pick out their produce and feel their fruits.
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i'm wondering how much of the category is going to permanently change >> well, it's a great question we don't know. it's music to my ears to hear you say that as a lifelong grocer, i don't think there's anything better than having people come in and being able to sample a papaya or show a new product or something like that. and clearly, what sort of shifted right now, you have to line up. you have to meter to get in the store. when you go in, you stay six feet apart you have shields you have techniques and tactics that the stores that are adopted to try to keep the environment safe but honestly, there's not as much grocers have skinnied down the selection of products. i think i saw staff the other day, normally it's 16, now it's 35,000 items and i think people generally are going in there and they're not doing the type of discovery or sampling they typically do but yes, we're human beings. we love the connection the heart of retail is the one
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on one chance to serve and help the customer with what they want or help them find something delicious for their meal it's harder to do that right now. so we have about -- about 24 square feet of retail per capita in the united states that number around the world was somewhere around 10 or 12. we're going to see some consolidation of retail space. there's going to be less demand for retail space i didn't say less grocers. maybe a few less, but that's all retail, and we're still going to see grocery stores built out but retail is going to go through a consolidation, and the retailers that don't have digital options or -- they're going to be challenged to make their way back and they're going to have to experiment and adopt but we are going to see a shift in retail and retail groceries as a result of this conclusion think about it you have not just the science which i frankly find confusing and going around every day i find that the economic
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dislocation that's happened as a result of this co-vid, which is -- which i don't think we've seen the full brunt of yet we'll see it over the next couple quarters. you have the civil unrest and the protest. it's opened up a deep disquiet and what's going to happen about that and companies finding their way with a need to realize they can't just not say something about it they have to say something and do something about it. with their team members and also with the communities at large. we're seeing that in the last -- and on your show and finally just the -- all the things working together, we've never had this sort of confluence of factors in our lifetime of business we haven't it's hard to say it's an uneasy road ahead. >> walter, just finally on amazon and i know you're in the involved anymore and you sold whole foods to amazon. wondering how you've been viewing the recent concerns and complaints and now lawsuits from amazon workers over warehouse
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conditions and protections around covid-19 and whether you have any concerns around whole food workers as the stores have remained essential and we've relied on them >> yeah. again, my connections are still there with whole foods and being a part of amazon i think they could have done better with respect to communication and made it more personal i think ceos are really putting their heart on the line with this situation out there i think that sort of thing is really appropriate right now in terms of people connecting with their brands but i also think look, the demand has been ridiculous in terms of the problem and it came out of nowhere they're taking a lot of steps as quickly as they can. the metaphor i used is we're building this bridge as we drive over it. we've never been here before, and you're having to make stuff up every day in terms of how you deal with this is it is mask or shield? what do you do that's a challenge and you have to say most of the
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times, including moingz, they're doing a good job taking the steps they can to keep people safe in an environment where there's so much change and demand on balance, i think they've done a reasonable job trying to meet the demand of the customer >> walter robb, thank you for joining us >> thanks for having me. >> have a good day >> former ceo of whole foods david? >> all right sara, thank you. shares of nkla up 8% we'll speak to the company's founder and executive chairman on this first day of trading under nkla now this is out there as a public company with the name and the symbol and the executive chairman trevor milton will be our guest next r right now. and right now, is a time for action. so, for a second time we're giving members
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a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most. like we've done together, so many times before. discover all the ways we're helping members at usaa.com/coronavirus
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i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. welcome back the cnbc road back barometer has the best day since the beginning of the co-vid pandemic for details steve liesman which has fascinating internals. i know you work hard at this
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>> yes thanks, carl it's a labor of love we have this high frequently data it's volatile and we try to work with it to show actual economic trends this data is most of it is from the second of june we never had that kind of economic data before it shows the best day we've had for the yelp store openings that we've had since we began tracking this. up 7% on average nationally. we also track new infections the three-day average new infections as a percent of prim. that's at 68%. we're averaging driving searches searches for driving directions and walking and transit directions provided by apple at 82% of january 13th. that again, is the best we've tracked with some improvement in transit or public transportation there. let's look at a map of the yelp store openings you can see the degree of it
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the lighter colors are the states where the stores are opening at the fastest clip there. up 10% in places like utah and what is that there north dakota, south dakota, idaho, places in the middle of the country. toward the edges, there is still store openings of california in fact, 47 of the 51 states plus d.c. that we follow had met store openings and that is the first time we've seen that large a number there was kind of a false start in early may that led to renewed closings we have not seen much of the demonstrations yet we did see one tick up in the d.c. area for store closings right there. now, let's look at some additional data we're following which is new data. jpmorgan now putting out credit card data. we're looking at this every day. this is from date last week. there's an interesting difference here. the card present data has flattened out after rising a little bit but good numbers for the card
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not present. people are spending but still spending online. however excited you get, there's a long way to go yelp is counting 144,000 stores closed around the country. the data would expect to be open we're moving in the right direction, and carl, maybe the best sign here is we used to call it the yelp store closings index. now we're calling it the yelp store opening index. let's hope we can continue with that name for many weeks and months to come >> steve liesman, that's good news we'll continue to watch it later today on the closing well, tim ryan today, 3:00 p.m. eastern on how that company is not just providing donations to the causes here on the civil unrest, but also some innovative solutions for their hundreds of thousands of employees including paid time off to volunteer with social justice information that's at 3 p.m. the market is positive, but just barely
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hotels and casinos on the las vegas strip begin reopening today. kyle wilcox is on the ground with more today. kyle, we appreciate you being our eyes and ears on the strip tell us what's happening >> reporter: well, as of now there hasn't been much foot traffic out here it's kind of an exciting vibe here as several hotels and casinos are getting ready to open in a couple of hours including the bellagio they had the fountain on earlier. there have been some people walking through. not a huge crowd but it is still early.
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hotels like caesar's palace, mgm grand, the cosmopolitan and several others are opening their doors today. the bellagio is opening at 10:00 a.m. others are separated to open atg when hotels like the d and golden gate opened their doors at 12:01 a.m each of the hotels are opening with new safety protocols in light of covid-19 to help employees and customers feel safe some require masks at poker tables while others leave it up to the guests to wear one or not. a hose postalty professor says the reopenings will give nevada's economy some life. >> we know it's not going to be june of 2019 and we're not going to see those numbers but what we will see is we're going to start to see a return to normal. >> now the fountain show here t
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bellagio is set to kick off at 9:30 to celebrate the reopening. kyle wilcox, back to you >> kyle, see how it goes, thank you. coming up at 11:30s this morning apple co-founder steve w wozniak. stay with us on "squawk on the street." nasdaq the best performer of the three major averages only up 0.1% a newlywed... a guy who just got into college... that's why behind these masks, johnson & johnson scientists are working to accelerate development of a covid-19 vaccine, drawing on decades of experience responding to public health emergencies like ebola and hiv. for the life behind every mask, the clock never stops and neither do we. as business moves forward,
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founder and executive chairman trevor milton before the pandemic hit and he joins us yet again. at the time you described the company as a technology, energy company, and we learned along with our viewers in terms of your efforts in trucks and hydrogen cells and the whole vertical integration, but let's talk finances now since you are now going to be judged on your ability to continue to grow. you lost $89 million last year you're going to lose money this year when are you going to start to see real revenues? >> our revenues come about the middle of next year is when our big revenues really start rolling in our factory in germany comes online next year the pandemic slowed us down a couple months europe still shut down and we can't get to our factory in europe once that opens up in germany we will get going looking like a couple month delay next year, third quarter we'll have trucks rolling out of
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the assembly line in germany. >> when we last spoke again as i referenced early march you talked ate an $800 million order from anheuser-busch and mentioned there are orders many times bigger than that is that still the case and can you tell us about any other orderses >> there's a lot of really good interest and customers that are wanting the trucks the hardest part right now is trying to figure out how to deliver them with the infrastructure going up at the same time. for your audience real quick, we have the hydrogen electric truck that requires the hydrogen networken network to be built and the battery electric truck which does not require infrastructure. the battery off the assembly line will be delivered to customers throughout the country, the hydrogen trucks we're working on those locations and why the difference, hydrogen goes further than a battery electric truck does and it's lighter to operate
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they hit two markets it's a lot of juggling the different things but we're close. we just ordered the largest order ever of electrolyzers that i know of, an order yesterday over $30 million to produce over 40,000 kilograms of hydro gren we made that order yesterday out of norway. we're prepping our first five stations to be up and running and should be breaking ground on these stations this year. >> at what point would you share with us that you told me, you were ready to announce orders many times bigger than the $800 million order with anheuser-busch >> we're close i'll tell you what as soon as we're ready to announce it we'll give you a ring so you can -- we can revisit that in person again, but it's close. it's really close. we're trying to deal with a lot of logistics around with the customers, the pr, everything else it's coming soon >> all right you know, clearly from what you discussed in terms of your
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purchases it's a capital intensive business you've raised a good amount of capital, but are you going to need to consistently hit the market in terms of selling stocks and raising other capital? >> yeah. it is a capital intensive market but what a lot of people don't know is this, we don't -- the most extensive part of our business model is the hydrogen network and ours most valuable aspect of our company because we're an energy tech company these hydrogen stations we don't just go put them up with speculation. what we do is we presell, like 500 trucks on a route. with that route we can afford to -- we sign the customers up with leases on the trucks and sell the leases off and then we can pay for the network with cash we definitely will have to go raise money down the road. we raised a billion -- almost a billion through this ipo in some of the other offerings so we have a lot of money in our account and no debt, but no doubt we will have to raise more money. that will come down the road
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once we hit benchmarks and then the investors once they know you've hit your benchmarks they open up their pocketbooks at that point it's all execution that's -- we're right on the edge of that right now. >> right i know i'll ask the question in terms of competition, the likes from tesla, but your point would be, i suppose, that you are vertically integrated and it's not just about selling somebody the truck as you say but selling them the entire energy system. >> yeah. i think the coolest part about nicola we make five times more revenue per truck than daimler does. that's why you see so many people excited when peter built sells a truck the oil companies make three quarters of a million on that truck in oil clapping every time peter built sells a truck. with nicola, we take that away from the oil company and bring it in house. hydrogen zero emotion revenue. that's the coolest part about
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this, five times per revenue for each truck sold. >> you've had an incredible success, 135 million shares at least according to the proxy of this company that makes you a very wealthy man. you're executive chairman. are you going to plan so sell any stock? can you make a commitment to those who have invested in your idea you're going to be around leading and fulfilling on the execution of the company you're putting out here >> my number one goal is to execute this vision. it's going to take tifive yearst really -- after five years there won't be much more need for me it's not that i'm planning on going anywhere but i'm an invo nater. my number one thing is to put things together no one else can do in the world and see vertical integration no one else can see and i bring the way smarter people than me around me to help me execute it.
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we at this merger, we -- i moved over from ceo to executive chairman and founder the ceo still reports to me but i brought in one of my favorite people in the world, mark russell, used to be the president of worthington industries he will help me execute this vision i'm right along his side and locked up for a year on almost all my stock i don't really want to go anywhere my dream would be to stay here as long as i can and needed. i don't know if that will be much more than five or ten years. at that point it's just building factories and that's not what i'm good at. i'm gloods at complete transformation and disruption. i hope i can give them everything i can do in that time period where they're successful. >> we're going to be paying close attention, trevor. we look forward to further conversations as your vision progresses to reality. thank you for spending some time this morning. >> it's an awesome day today first day traded on the nasdaq so
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