still bullish. improving data, morgan, after that barn burner of a member relative to expectations for jobs >> that's right of course and we have a fed meeting in the middle of the week as well. and it is holding attention for investo investors. nasdaq with a record day high. one of the names in the green today, amazon, rbc capital, the price target, get this, joining us now is mark, great to have you on amazon is currently training around 2500. you have been bullish on this name for awhile. what plead to the price target increase, though >> we were at our eighth annual u.s. survey. the trends have gotten more p positive every year. if you look at penetrate rates,

the attention to spend, and maybe most bullish of all, prime pe penetration. they reached a record high level. we think globally they started around 150 million subs. we think they will exit this year doclose to 100 million sub. when we're more bullish we will raise the price target >> how sticky do you expect that model to be based on the research you said some of those satisfaction results among consumers have come down a bit yeah, it is an issue we first saw it clipped down in our survey work, and why would satisfaction be falling and slipping at amazon it used to be high 80% of customers described themselves

as very satisfied. that number now is in the high 60s. we think near term there was probably disappointment around covid disrupted deliveries i am worried they have increasingly put more and more vendors on the sight and they have sacrificed quality for selection. so those are some issues, but in the next five to ten years they need to get the satisfaction scores higher. >> good morning, this is john. what happened to the balance of power between platforms like amazon, etsy, and small businesses hit so hard in this time period and what does it mean for the health of the echo system just as you're bullish on amazon there is a lot of small businesses that might not open up that are in need of capital and are perhaps in less position

than ever to push back on policies from someone like an amazon >> you make a -- you're hitting on something that is very important. there is two major trends going on you're seeing a lot of fiscal retail stores have their knees cut out from under them. they're closed, if you're a retail store and your doors are closed for two or three months, it is very hard to stay in business that is going to help amazon amazon getting more and more compelling there is more platforms out there. etsy is interesting, there are alternatives for mall businesma manufacturers, they want to sell on the internet and they don't want a reopen them

>> i know they may not be in your own universe, but how closely are you watching some of the cloud enterprise names for the kind of reversal that you might expect on a pure stance? how much are they in danger? >> let's see, you took me two ways there, you took me with cloud and with campbell. one of the most interesting things we're seeing is dramatically heightened levels of cloud computing one of the most interesting data points in the last week or two weeks is what zoom said on their earnings call. they went to a 20 x increase in usage. they could not have done it without their major cloud vendor, aws. i thought that was one of the most stampis of approval.

>> what about amazon, they had already been investing and do you expect the investing to accelerate landlords in need of stable tenants, a decrease in competition or do you expect them to hold back? >> i would -- i have not ever seen amazon to hold back i would not be surprised if the fall backs were not from just the amazon press i know they went out they were building out 60% increase in capacity but i think the demand was higher and that could create other opportunities. i expect them to tell us there

is another 60% increase in capacity grocery sales just pivoted online amazon could win that, troubl y troublely -- probably should. >> some shipments including the postal workers doing service reviews, and if prices to get goods to people's homes continues to go up, what does that mean? >> shipping has become bigger and bigger loss driver for amazon it has been over the years we're talking about tens of billions now that they're using to run their shipping network.

what i found interesting recently is in terms of get e.g. products out to consumers has not been on the delivery side. it is getting products into the distribution centers when you had to do social distancing among employees at the distribution centers i think they have come close to solving that problem, but they will be back to par, what we normally expect as prime customers by the end of the year but it will be a major challenge for the company. can you tell me if they have improved their conditions. i don't know if you want to call it a flare up or discontent among workers. ternly beginning in april through may over those issues. is that something where amazon spending is being effective and are you able to assess and track overtime if it is? >> i don't the we can assess

that externally. that $4 billion they talked about spending for the safety and security of their employees, i think they needed to do that i am pretty certain that is going to happen, that means that labor issue wills be more and more important for amazon. they have done a decent job historically, but they better get this pivot right this quarter. >> finally, mark, just to shift gears here, i want to get your thoughts on what we're seeing play out in terms of on tent, guide posts, facebook, snap, and twitter are concerned and what that means for advertising

what you could see for higher risk there >> that is a huge question i think this will take awhile to sort out there is a lot of political risk i don't think there is advertising risk here. in the years that we have been surveying advertisers, i never really heard concerns about political content. the ads show up at the relevant time, and i don't think they try to put ads against the political content. it could be a regulatory issue i know they're taking very different approaches here. twitter or facebook. it will be an ongoing issue and i'm sure it will heat up between now and november

>> after the break, phillip morris international on solutions and the path fwaorrd in the wake of civil unrest. we'll be right back. dad, i'm scared. ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america. ♪ deposit checks,

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welcome back, confronted with racial disparities, many businesses are talking about moving beyond their talking points and beginning to implement real change.

joining us now is andre. you say since long before any of us were alive, ri schism has perpetuated divisions. you say we all have the obligation to help bridge the divides in society correct me where i might get everything wrong here. you have three senior executives in phillip morris e internationl does it affect your ability to understand what is happening in the world or specifically in the united states right now? >> first i want to remind you that phillip morris

international is not operating in the u.s we are very close to the events and seeing the murder of george floyd and the protest that followed so i think inequality and as a company, it is essentially a ta p pestry of people around the world. i believe that addressing the issues we're facing personal

company, we can address the inequality issue in terms of opportunity and also as a company we are on the worldwide platform in the u.s. i believe that understanding each other, and understanding cultural differences, race differences, all of the people that are equal, starts at home and school and it continues at work so we think that our approach for all of this will elevate we're not going to eliminate them tomorrow. >> i don't want to act like i'm speaking from a superior position we at cnbc, there is certainly just as much room for improvement there, but i just

wonder how do you make that progress, how do you measure from progress? is diversity in the leadership team important when it comes to men and women, people from various areas around the world, or are there other things that are important. does there need to be any move there? what is your philosophy on it? >> absolutely diversity is essential. as we operate in different cultures, we need to understand them better for the people that come for unity now the management is cultural and ethical presentations as well

i believe much more in putting the right people in the right projects to make the right decisions by represents better the consumers with several products so it makes business sense and it makes more sense to have inclusion. now for inclusion we need to understand the cultural differences. it is not only the important thing of racial difference, which is important, but i think that dialogue has to be supported. and i think that with all of the negatives, they gave corporations the golden opportunity to display them i

hear from everybody in the company that people are brought much closer together and i think we can build on this and continue this momentum as we go forward and maintain the dialogue and we can diminish other racial discrimination >> the "new york times" took a crack at this subject over the weekend. trying to prove inclusion. and when corporate america, when companies really want something they put a target on it. if you don't meet the target there are consequences with this it has largely been about maintaining a dialogue and we're working on it. is that argue fair >> i think we have to have targets in the company

i agree with the measure, so we'll have metrics that we use and i they is the best way to manage i don't think so the deposition of people, or the value of inclusion and diversities, i say that we can always improve and here the time from the employees, i think we do believe in the premeasure. >> thank you for joining us today, you mentioned covid before, and i wanted your thoughts on the stance you took from the wake of the pandemic. the fact that phillip morris made the decision not to terminate any employment or get

rid of any unless for cause, and the fact that you put on hold any restructuring planning and the fact that you see both of those take that right now how do you think that is affecting the dialogue within the company as it ripples out to other parts of the socioeconomic sphere >> i think our priority was to the safety of the employees, and the measures, where ever the employees work especially on the front lines. the second was business continuity, and it is clear that is not covered without piece of mind and they are guaranteeing it

will not be in the crisis period guaranteed them that their salaries will be paid fully, and also we gave an additional bonus. and i think this is going to work very well for us, and actually our employees from motivation to, you know, many measures that increased quite dramatically in this period. and it is a vast majority of the places we operate. that was the right thing to do >> the ceo of phillip morris international. thank you for talking with us this morning >> thank you for having me >> take a look at some of the

names leading the. this morning it is coty and boeing. all of these names have doubled or in some cases tripled from their march low. we're back in a mitenu ever since we've gone mobile on the now platform, something's gotten into the office. i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it?

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we're also going to be announcing $100 million that we're going to invest toward racial equity and injustice. >> we have a visibility as a sports league, franchise, and athletes and i believe with that comes a huge responsibility to address the problems to try to fix them and make a difference. welcome back, after getting march and april a number of travel stocks have now rebounded in a very big way.

we have the break down and those numbers. >> hey, there is an internal debate takes place as to whether or not the gains are justified take a look at marriott and hill ton. they're up 150%. it coincides with a gradual increase to 36%, however still well below the 64% before the coronavirus. t cruiselines have no occupancy to report royal, carnival, and norwegian are up they have been able to raise capital in the debt and equity market they raised an additional two billion last week. l analysts say they can survive with no revenues for about 14 months and ubs says about 70% of short

cruises that originate from florida to the caribbean are drive in passengers. that changes for longer duration cruises, but it suggests that the fear of getting on a plane could be less of a barrier for the cruise lines still huge challenges ahead for this industry including how to operate in the post covid world and at what capacity the crew's operators are hoping to resume some sailings in august, but some are hoping to see that date pushed back. >> absolutely i hope to be on a ship when it happens >> let's go to sue and get a update >> good morning, here is what is happening at this hour, as democratic lawmakers hold an

8:46 moment of silence this morning, they're also unveiling a reform bill in the house that would ease barriers for lawsuits against police, but they say it is unlikely that bill will get president trump's support. new zealand's prime minister says they have eliminated the coronavirus domestically and will lift nearly all restrictions iranian lawmakers raise their fists in support of anti-racism protests in the united states. one lawmaker requested 15 seconds of silence for americans participating in those demonstrations and shut down orders, travel bans, and business closures prevented nearly 60 million coronavirus infections in the united states and 285 million in china. you're up to date, john over to you. >> thank you, sue.

after the break, zuckerberg's free speech bubble, we'll look into why she's calling out the facebook ceo ayitust,eck in with her, nex st wh this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. but a resilient business you cacan be ready for it.re. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps

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facebook on friday said they will announce their content review in is after the company faced a lot of criticism the next against calls it zuckerberg's free speech bubble. welcome, good to see you >> good to see you >> this headline crept by some people on friday night, i wonder if it raised any eyebrows for you? >> which headline, the filter bubble >> that they would review some content. it is typical of facebook to do

these tiny little baby steps toward something and then do what they want, and then see the reaction i expect them to do almost nothing. it would be nice to see them as a leader >> do you think that means you think they will continue to follow the base evpace even if s set by others. >> i think they will do what they want because they have all of the power i think mark is quite addime mi in this area and i would be surprised if they did anything to change the decision they made he talked about lots of research without telling us the research he used. i would like to know who he was relying on to make this decision, for example.

for all of the changes on twitter, even though it is president trump's favorite mode of communication, facebook is still where the game is played whether or not it is content or polit politic advertising or anything. you don't see a lot of the activity, it is designed to make it easy for people to hide you can't do it quite as easily on twitter so it is kind of a perfect situation where they say we're thinking about it, mulling it, and we're waiting it out they're going to wait out this administration comes up to it and then if the administration changes i'm sure they change themselves depending >> what is the easiest, and i know none of them are probably easy what is the easiest first step that facebook could take if they were serious about doing

something in this area it sounds like that want to act as a platform, there are things they could do platform wide that would be a move in the direction of change. it is being used by different people who are gaining the system there is a lot of great things about groups where people communicate with each other and they do a lot of great things. it is really not a place to go to calm things down it is the way it is created. you do have some civic responsibility and every time

you say this to them they cry first amendment which is not true, they're constantly editing that site. they are not a completely free speech platform, they just they do it all of the time. you can't say they don't have an example when they obviously do i would like a little more transparency on them if he wants to stick to his thoughts here. i would like to know how he came to this conclusion, that might be nice, for example >> we talked about the amplification issue. i'm going to play devil's advocate here. from the business standpoint why

is it the possibility of companies like facebook that enjoy protections and a classification as a platform under section 230 to have to patrol this content and make a decision like this isn't that the role of government and regulation and the depate that is happening in this country right now >> absolutely, but they're con flati conflating the two things and they're trying to confuse you. lots of platforms make edits decisi - editing decisions every day. it has some responsibility here like any other corporation they can't have it both ways, say they don't have responsibility, and their stock is going up like crazy because

they're the only game in town in terms of advertising the issue will be where the money or the data is i think the work needs to be done around data and the use ths if they can confirm that they have to do something about their problem, but until that happens they're just going to go up to the right. they can control the advertising online that is where free speech becomes an issue that is where people are going to quietly organize in ways that are un-american passively.

>> i don't think they're un-american. i think they're just taking it too far. they just aggregate responsibility it is content moderation, it is costly making sure the platform -- look if they want to run a platform like this. if they want to run this kind of bar, let them run this kind of bar. now today, it is the only game in town, that's the only place that people can go, but i think they will have a higher order of responsibility the cd of millton friedman, shareholders are not the only stake hold stakeholders, i don't think that is a particularly a civil unrest there are voices speaking up in analog time marching, talking,

and discussing and it seems like they're not doing anything they need to engage in the discussion jeff besos said i don't care, i don't want this customer we have to have discussions with our leaders in realtime who have a sense of what is happening in the world at large and i think eventually it will hurt them maybe not today but it will eventually >> do you think zuckerberg has zero sensitivity to employees walking off of the job or doing virtual walkouts or opening open letters in criticism of management >> i think he is very sensitive to that. there was a lot of convincing argumenting from employees internally i think that probably shook him up quite a bit his first move is that american could not scale, that is their first idiotic move that drives

me crazy i think he cares a great deal what his employees think it has been them speaking out quite a bit, but this group of employees has not spoken out >> yeah, that is why last week's letters and the walkout were so note worthy. we're going to watch it closely with your help >> thank you >> now let's go back to the markets with the nasdaq touching a record high a few minutes ago. >> just off of the highs, the

highest level from the 25th. going into the beaten up sectors. we saw transport strong again today, small caps out performing today. bank stocks and energy there are the two s&p sectors after a rough april and a good part of may hear even though they're doing better i want to point out their way, way below. they're still at nearly 32%. 22% from their recent highs. there you see that, we have a long way to go here. small caps have done well. mega caps are under performing, semis are under performing, it

is nice to see a little bit of a slow down in amazon, google, facebook, apple, and micro sosot you see the names there, they're basically doing nothing today. the problem that we have right now is the breadth of the rally is limiting the choices now. he is under waiting staples and utilities. they are talking about value that is banks and energy, but these are the stocks, the rally is so great there is not a lot of choices for dramatically beaten up sectors here kbrp are the markets moving, i get this every day, can you explain why they're moving with all of the markets. the stats are supportive, the job, the manufacturing service numbers are supportive of the reopening story. from the ecb the u.s. and japan.

morgan, back to you. >> and you explain it so well every day. as go to boeing, they are accounting for a charge chunk of the dows gains today it has s benefis benefitting frt overall optimism hopefully the plunge in aircraft demand, the worse i ioft,s over stay with us a grandfather of 14.

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dollar amounts versus entire wholesale shares u it was up 15% from the same time last year they also say the future increased engagement with you young younger customers. across the board fidelity says that more than 85% of buy orders are placed using dollar based trading. just last week charles schwab also rolled out what they call stock slices sofi was the first big name to launch last summer soon after by square and robin hood.

for as low as a dollar, you can buy names like berkshire hathaway that would others set you back more than $300,000 per share. more than 52% of first trades are made on a fractional perc t percent, and fraction fractionay is higher for more expensive names. analysts tell me the trend c combined with zero ricommission. >> let's get a check on where we stand in today's trade all of the nay jor major indice down 'll kep up about half a percent.

weta a quick break and be back in two.

the number two gainer right now is tesla pretty good china sales data this is up from 350 about two months ago, but tomorrow we will ask about the company, the business, and the price action this is decision tech.

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welcome back big tech continues to respond to sie civil unrest our next guest company is pledging donate funds to multiple civil rights organizations. joining us now to discuss, the pager duty ceo jennifer, good morning >> thanks for having me. >> i want to talk about the donations that you're making and -- first i want to talk about your earnings that happened recently. it's an alert system for the vital signs in i.t you added 286 new customers in the quarter. 25 with annual recurring revenue

above $100,000 at the same time there's a mixed thing going on in mediimmediatmm business how are your customers doing >> we had a strong quarter with 33% growth as our customers look to become digital companies overnight where they are transitioning to 100% ecommerce, they need a platform like ours to imagine all those mobile apps that deliver the end customer experience with our customers, we're seeing them pulling forward plans and strategies that would have taken them years into weeks and months that means they need great strategic partners to execute on those things as we start to see a recovery akr across, the long term is very strong we expect to suh many of our

customers accelerate their clouded option as well as look to ensure they have a strong security stance moving to a more powerful ecommerce model in the future >> let's talk about what you're doing as we see this civil unrest what are we hearing from your work force what moves are you making and what impact do you think you can have >> thank you for asking. it's been a heartbreaking last couple of weeks. i'm proud of how our customers respo responded. i needed to stand with our black community against hate, violence and racism we ve been strategic about building an inclusive and diverse work force 50% of our managers are underrepresented people. we have a balanced leadership team and board we still have a lot of work to do that work needs to be systemic

we continue to insist on slates that are balanced and continue to do more to create access to underrepresented people into the tech industry whether that's opening offices in places like atlanta or ensuring our intern programs are on the diverse minority individuals if you can build a community of and access in that environment, i think that bodes very well we'll continue to contribute to places like the naacp and black lives matter more important we're calling out to other organizations to join us in celebrating juneteenth. we're calling it day for change. to reflect on what they need to do differently to derive change and to educate themgss >> you laid out a lot of

specifics. l we look forward to hearing how it devolves. i want to back to something you said that's this massive truncation of time lines from weeks to years to months. how much of that pulls forward from the rest of the year and beyond >> it's a new large strategic investments as wuj ets start to loosen up. we have seen our platform hold up really well in environment where is there's been tremendous surge in increased incidents sometimes up to 11 times the incidents our customers are used to in the case of zoom, which we're

all using to help educate our children or manage meters. zoom has become more efficient and effective. they are improving their incident response by 20% as a result of using pager duties intelligence and some of our more advanced ad based solutions. we're pleased the platform is holding up >> you talk about event intelligence and ai. i can't help pu think tech is in this era of data, of tracking, of quick learning. how can that be applied or can it be applied to some of the social challenges we were just talking about that you want to address. measure m, use of data, oare companies giving enough data for companies like page you are duty and others in the ecosystem to analyze that and make positive

change >> we host an annual inclusion survey that looks at the engagement of our employees through the lens of how they identify which is different than traditional engagement survey. this summer we will be releasing our adversity stats and inclusion statistics because we think more companies need to lead by example. p they're going to drive measurable change. it's helps you measure

>> is there a need for initiatives for masses of companies to provide that data so that it can have the most impact >> i think we have to start making sure we know what's going on within our own organizations first. people have more data that they need what to do it it's the insights and actions. >> driving results from that i hear you thanks for being with us >> thanks for having me. watching this market, it was about 30 seconds till the judge. it's the travel related names that have taken the lead today somewhat at the expense of the tinl and microsofts and apples you could have those cyclical

trades take place without doing too much damage tot have led us far. >> that's been the case. earnings largely out of the way wp we get a number of consumer names into pulse of the broader economy and these reopenings >> we'll get the fed meeting starting tomorrow. let's get to the judge in the half thanks very much welcome to the halftime report our top story this hour, you get guessed it is the s&p next? we'll debate that with our investment committee today let's check the market go right to the wall, see where we are we are marching higher again there's the dow. it's a gain of 242 points. 3208 for the