for a new plant-based meat i don't know, it is so confusing the 2020 which player landed the deal tuesday, june 23, 2020 "squawk box" begins right now. >> good morning, everybody welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. boy, what a swing it is overnight. reversal of that didn't happen now you see the reversal up 250 points those comments walked back from

peter navarro. it has been a huge swing s&p futures up, nasdaq up by 62. the nasdaq up seven sessions in a row. s&p is up. watching for the month of june, all three of these is up on track to be the third month in a row taking a look at treasury yields you'll see the 10-year is yielding 0.715%. crude oil up above 40 for the first time since the lockdown in early march. getting to the story it has been a wild ride overnight. last night on fox news, white house trade advisor peter navarro responded to a question about the china trade deal

saying it is, quote, over. at that point, futures plunged about 400 points but then recovered after he later clarified his comments saying it had nothing to do with the phase 1 trade deal which continues to be in place. he was speaking to the quote lack of trust of the chinese party after they lied about the origins of the chinese virus. president trump posting a tweet saying the china trade deal is fully in tact. the lesson is that the move is a good reminder of how connected the stocks are with what happens with china and out the rhetoric itself can create its own crisis we should get exclusive new data later this hour. if you were either playing the

futures or watching them, it was something to be hold >> percentage move not crazy but pretty crazy yesterday in the markets was crazy. how did we end up higher leland miller was already booked he was already coming on so that was good >> better than be lucky than good >> navarro, i like him we know he has influence he is the biggest china hawk in the administration or the whole country. he would basically say, it is over reminds me when you are in an argument with something and you go, its over if i had been the anchor of that

show, i think i would have said, you are saying the phase 1 trade deal is over i don't think we got that follow-up. as lighthizer said last week, everything is on track i don't know anything about beyond phase 1 >> when you are coming on speaki speaking for the administration, you have to be careful for president trump to come on and tweet in response to that. this is just a reminder that these things do matter >> president trump had to come in and be the adult in the room in this case he had to walk back. his reasonable twitter account was where we saw some. and i'm still dealing with the plant-based meat

is it meat is it meat >> it can be meaty >> okay. a veggie burger is not meat. there is a hamburger you get from a cow what is a plant-based meat burger do you know? were you serving those friday night. you messed up a couple of numbers. you gave me a four-number address. you actually have a one-number address. i'm not surprised for a guy like you in the hamptons. >> not in the hamptons >> where in the world is andrew ross sorkin? can you tell me, is it a meat burger what is that >> we know what it is. >> are you seriously confused? are you going to be with the

people who say you can't call it meat >> right we need a new name for it. plant-based meat is a jump be shrimp >> too confusing >> it is early let's move on. we'll talk to leland miller about the whole china thing. president trump has signed an order suspending the entry of certain foreign workers. some business groups strongly oppose it and will block the entry of people on hb 1 visas and l 1 visas of people being transferred within the company also blocked for workers in the food service industry. the administration says the suspension will open up 525,000 jobs for u.s. workers.

most u.s. consulates are closed for routine visa processing anyway because of the pandemic google ceo who was born in india tweeted that immigration has made the usa a global technology leader he said he is disappointed will stand. tech has a problem i don't think we have the domestic people with the skills in certain industries you need for that sour not really saving anyone's job if you don't have someone qualified to take the job. i understand the sentiment, pandemic and all these things is there a way for a carve out for highly-skilled people. i don't know what would you do, sorkin? apparently not

>> the push back you get on the other side is you should pay more these are pretty high paying jobs already someone wants to call it pleat plant-based meat >> who wants to eat pleats >> we need madison avenue on this something that really sounds mouth watering and describes what we are talking about. apple making news at its developer's conference saying in its future, macs chips will be made by apple instead of intel the company now says its own chips will provide better performance using less power says the new operating system will redesign the home screen

addi adding wigits and picture in pictures that watch in tiny windows. offering real-time translation between two people speaking different langs and will support 11 different languages you can unlock and start your car. only one car at the launch, the bmw 5 series you've seen the steady clooimb. this has been a stay-at-home trade people have been watching. a lot of big news there, maybe the most important part is that they'll be creating their own chips to run the mac that go with this. that's another form of control they can upgrade at any point when they have something new to roll out and a way to get more

control of the entire sphere >> you know me, i watched it as it was coming yesterday. i loved all of it. that's who i am. i don't know what kind of magic spell they put over you. the chips is probably the biggest thing over the next 10 years. the software will have a huge impact in making this a super cycle. people will want to upgrade their phones the features themselves are very cool if you are on an android, you are looking at this saying, welcome to 2014 because a lot of these features already existed in many other platforms before for those of us who live an apple life, i think there is a lot of people looking forward tho these. >> you said if you are on android. or if you are an android

>> on android. >> i'm not going to knock apple because i like the stuff too much if you like widgits, the funning things, the translation feature. great, it has been on android quite some is time there will be the haters on this side, the lovers on this side. here we are. >> the language thing, that might work for us when you are talking or i'm talking i might be able to understand what the hell you are understanding. what about faux meet and call it feet eating feet. >> that sounds delicious let's have feet for dinner no >> all right 6:11 not too bad. >> we have a lot more. joe will come up with other names for meat we'll come back to talk about

the phase two reopening in new york city and the acceleration of covid and the outbreak of some u.s. states our good friend dr. gottlieb will be with us. carnival extends suspension beyond that of other companies we'll be back in just a moment w. neighborhood's great. amazing school district. the hoa has been very involved. these shrubs aren't board approved. you need to break down your cardboard. thank you. violation. violation. i see you've met cynthia. at least geico makes bundling our home and car insurance easy. and it does help us save a bunch of money. two inches over regulation. thanks, cynthia. for bundling made easy, go to geico.com

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new york city began phase two of reopening includes offices operating at 50% of maximum occupancy. restaurants offering outdoor dining and retailers bring back indoor shopping. barber shops, beauty salons reopen at reduced capacity i have an appointment for next week city officials estimated as many as 300,000 people were eligible to return to work as of yesterday. i don't know who is supposed to read this. someone named anchor >> changed to me, joe. we have an update now on the pandemic numbers a global cases now topped 9.1 million. 472,000 deaths the u.s. has 2.3 million cases

and at 120,000 deaths here in the united states. cases in california continue to accelerate 36% of california's 185,000 cases have been diagnosed in the past 14 days in texas, governor abbott said additional measures will be necessary and the state will have to take tougher actions a change from the comment on june 12 that there was no need to ratchet back the reopening of businesses in that state the seven-day average has increased more than 86% in texas versus a week ago. other hot spots include arizona where there is a big debate over masks taking place now joining us now, dr. gottlieb a couple of things i want to

sort through here. people debate the case load, the hospitalization rate and the death rate death rate inching up. what is the tipping point in terms of your worries around specific states at this moment >> the death rates are a lagging indicator. it doesn't reflect what is happening now or last week cases are building quickly which suggests that the spread is pervasive. once you get this kind of growth day over day, i think what people are most focused on is hospit hospitalizations time to hospitalization is probably about a week after the on set of symptoms hospitalizations are a more sensitive indicator.

those are going up that said, they are not going up at the same pace as we saw at the height of the pandemic in part because this isn't as large as the first wave we had and because it is affecting younger people it seems to be in the younger co-hurt because older people are protecting themselves better look at texas with about 3,700 hospitalized and california. cities like houston now having hospitals like children's hospital accepting adult patients the hospital system isn't on the brink of being overwhelmed like in new york city it is certainly under strains now in texas, california, arizona. it is full and getting fuller and that could change quickly. >> the other question i had

relates to this age issue. how much do you think the morbidity rate has come down versus folks getting remdesivir and plasma and other therapies either emerging or being tested? >> both of those things but we need to see what happens over the next several weeks the hospitals haven't had the surge in cases yet as the hospitals fill up with covid cases, we'll see how much they decline as a result of younger age cohort no question they'll preserve more life. doctors have learned about how to treat these cases and where to be aggressive and not to stress the patients. they are trying to manage more

on none breathers or high-flow oxygen we'll see the improved outcome and preserve more life no question about that >> is there one they are prapeuu think has the most promise for this fall that will keep people from the hospital to begin with? >> regeneron's drug. amgen is further behind these. the problem is that they'll probably be the most beneficial and will be dose limited we'll not have enough doses to use indiscriminately people with mild access. those patients might be the

least beneficial they might progress. regeneron is doing a great study as a profill axis and treatment in early disease we'll have some good access to this those drugs could be a game changer when used in the right setting. if i was in the government now, this is where i'd be focused now to free up manufacturing to make these drugs to scale we don't seem to be doing that which is a challenge >> just so i understand, you think this fall there will be an opportunity you will call your doctor and get a test at home, you wouldn't go to the hospital, you call cvs or whatever and pick up your drugs and use them.

is that a real possibility >> the drugs will be infused you'll have to go somewhere to get them a real possibility in the fall, you call and say, i have flu-like symptoms, they'll ship you a kit and those will have same-day or next day turn around ideally, these drugs, you want to use them in those early patients i think we'll only have enough doses to take care of hospitalized cases it is hard to think we won't have a lot of spread this fall if regeneron has an increase over the month we are not goingto be able to use that on anybody that we like to these drugs are relatively safe delivering the antibody to the virus. the antibody should circulate

harmlessly >> scott, maybe this is a definition of an anecdote al observation. it may have zero validity. picked up by many outlet's an italian doctor seeing patients that used to be in dire shape -- just reading this, saying they are sitting up in bed. it seems like the virus is weakening. it is a different situation. i'm sure he has no actual evidence to point to do you see these reports do you put any stock in that that there may be a mutation of the mortality rate >> there is a doctor in india that made the same claim i wouldn't put any stock in that the other thing, joe, that strain needs to be selected for.

the only way you can select for that strain is that it is somehow much, much more contagious. >> it will take a while for a mutation why would a new strain come in and displace the old strain anywhere i don't think it will happen quickly and probably not in this cycle. this is probably a longer term evolution for this virus >> just back to texas and the seriousness of the situation there. i saw a doctor from a texas hospital talking about what he was seeing there it reminded me of what we were seeing from new york city doctors when things were bad here how dire is the situation at the hospitals there? >> not dire but i've talked to some doctors there and they are getting pressed. there are a lot of covid patients and icus are filling

up arizona is at 85%. last week, they were saying 40% of general floor is covid patients the states have learned a lot and they can move patients around and really haven't implemented the emergency operations where they are expanding icu. miami dade is talking about expanding icu capacity, houston is doing that. when you look at the growth in cases, this has been under way for a while. you worry that they are hitting the growth we'll see at the end of the week there is always this dip after the weekend and it dips back up. we look at thursday, friday, saturday, if cases are shooting back up again and these cities are reporting 5,000 cases again which they might be. that's a pretty bad indicator. that's what i would be looking for. >> always good to see you. thank you for your advise and

expertise this morning talk to you soon when we come back, starbucks picking up plant-based meat partner, a feet partner as joe would call it for a new breakfast sandwich before we go, a look at the pre-market gainers in the s&p. marathon oil wti closed above $40 a barrel for the first time since march 6. "squawk box" will be right back. ♪ [shouting] [clapping and shouting] [cymbals clanging]

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welcome back the fake meat battle is heating up impossible foods landing a landmark deal. with us with the details what's the beef? >> starbucks announced it is adding the impossible breakfast sandwich to hits menu a huge win for impossible. beyond meat's shares pretty flat beyond and impossible have been going head-to-head nabbing

partnerships earlier this year, that extended to breakfast beyond is already at dunkin, carls and hardees canada stores. impossible is already at burger king adding starbucks, impossible is tripling the number of eateries carrying its products. a hefty win but diluted by the fact that most eateries are operating under capacity because of social distancing last year, impossible faced supply issues. this time around, the company has a partnership with a big manufacturer with ample capacity to ramp up >> i'm just thinking about the news we've heard recently about tyson and other of the chicken and the beef producers where

they've had trouble with their plants you don't hear that with any of these beyond meats or impossible burgers or anything. what is production like for these places because they are done differently >> they can. they do make a point of that i've been to an impossible foods factory. it is very different from pictures i've seen from a traditional meat packing factory. there are less humans and you don't have as much contact people are spaced out more even naturally not just during a pandemic >> also just from the perspective of trying to be in retail and wondering how things have changed as we've gone through social distancing and the closures, how have they done in terms of consumers just going to the grocery store

have the patterns changed and anticipate they'll change again? >> they have during beyond's last earnings call, the ceo guided investors and warned them that the rollout with these partnerships will be slowed down because of the pandemic and they are going to be shifting details in the food service into the retail sector then to the retail always to the top of that list seeing that increase of growth there is definitely an alternative there for these companies. >> thank you

great to see you today coming up, stocks are pointing to gains at the open. we'll talk strategy next and later, the ceo of docusign take a look at the performance of this high-flying stay-at-home stock up more than 130%. a look at some of yesterday's s&p winners there and losers we are coming back stay with us you're first. first to respond. first to put others' lives before your own. and in an emergency, you need a network that puts you first. that connects you to technology to each other and to other agencies. built with and for first responders. firstnet.

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welcome back good morning let's look at what is happening with the futures we are seeing significantly higher numbers s&p up by about 28 and nasdaq up by about 71 points all after the wild ride last night when peter navarro made some comments on fox saying the deal was over with china that all got walked back the president clarified and those futures went from down about 400 points to up by about 286. yesterday, the nasdaq closing at a new record high, the second time the tech heavy index has closed at a record level also the 20th time it closed at a high this year leading the charge where we've seen all along apple and microsoft closing at new highs. for more, we are joining by nila

and managing partner at douglas c. lane and cnbc contributor let's start with you, we've watched these technology names climb and climb. a lot of people say, look, they can't continue to lead the way and yet they do. what would you tell investors to do with these stocks >> the top five come from the nasdaq you have to be careful here. they are overbought. great companies, you have to be really careful so much money is going to these stay-at-home stocks. great cash flow. multiples over 40 times earnings i am not saying to sell these stocks but if they are overallocated to, there is so much money here. an opportunity in some of the beaten down sectors like

financials, industrials and select health care and other areas of the market. >> you are not saying sell but you are saying prune, which is sell some of it, right >> exactly you have apple and amazon and you have the rest of the country and the world. earnings will not be that great. these companies are dependent on consumer and advertising and on consumers growing. you have a lot of uncertainty. if you are just getting the earnings going to the stock price not really correlated. you are seeing momentum in the past and a lot of money here a lot of day trading where you look back to make sense of these stocks at these levels maybe not. if you don't have them today or you want to add to them later. >> nila, we have watched the

economy start to reopen and we've seen wti pick back up. back above $41 a barrel today. we've seen some very hopeful we'll try to get the economy back on track. i guess a large part of that has to be what the federal reserve and government is doing at this point. would you try to add all of that up, would you warrant people to be careful in terms of thinking that this market is going to drop based on new headlines that would come out >> it is the time to be careful. i would like to pick up on that thread as much as we do know about monetary stimulus that has really supported things over this rough period. we don't know a lot about how the economy opens back to prepandemic levels of course, we are seeing increase in high-frequency data,

even retail data that looks promising but there is still a lot of scar tissue in the labor market we won't see what the brunt of those earnings will be we have seen things improve. what that means for stocks is some pull back even if the trend is upward, we can expect a lot of volatility diversification is definitely the answer >> what does be careful mean does that mean buy on dips don't put money to work at all sell some of what you currently have in your portfolio >> volatility can be a place of opportunity. you want to look for those companies that have strong balance sheets, good cash flow, mimicking the strength of the megatech firms across sectors, across geography.

instead of thinking by the dip, which has been rewarded because each dip was followed by a new record high. we are cautioning to fill in the gaps if you are underweight a particular sector. maybe equities or fixed income think about how you can fill in the gaps, diverse if i across sectors and with equities and bonds and ride out this volatility as the economy starts to reignite. >> sounds like you are agreeing you would not be buying some of these technology top performers? >> no. tech has brought us in has been a leading sector. not abandoning tech but also looking outside of tech. this is a do not put your eggs in one basket recommendation look across sectors. we want to look for values

across different sectors not just tech but stand to gain as the economy reopens >> what areas do you like if you are a little nervous with technology at this point there have been so many places but it feels like all the places where companies don't have strong balance sheets. all of those stocks have been f faretted out >> tech has become the consumer staple of 2009 if you want to look to the steady cash flow, consumer staples are still good companies. coke and pepsis of the world health care is another one looking at j&j, bristol meyers they are trading at below market multiples. you can look at pharma, glaxo

and others health care could be one that has steady cash flows going into the next few quarters. companies like honeywell that are leveraged and diversified and have access to these markets at any time. i would think the barbell approach, you want those value stocks when we do get through this, those companies trading at book value and below the market multiple, i'll give you some examples, deep sick calls like general motors companies like that that can do really well. you have to be patient trading at five, six times earnings. we don't know when they get the vaccine. these stocks will reflect strong

economy and money will come out of these other sectors that everybody has run into the timing of that is almost impossible to do as a long-term investor, you want to be in these pockets. you know you get rewarded when these things are pretty ugly >> thank you for your time today. >> thank you okay when we come back, a lot more here on "squawk box. dow futures continue to climb higher after falling over 400 points last night after the comments of peter navarro on trade with china later senator toomey on the need for more stimulus as the economy reopens. >> a reminder to watch or listen to us live any time on the cnbc app. we are back in just a moment

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welcome back the recent default trade in tact up again this morning. the dow jones up 285 points. indicated up in the pre-market there. nasdaq indicated up by about 72 and s&p indicated up 28 after some pretty big swings overnight. the dow was down as much as 400, the s&p down as much as 60 after those comments from peter navarro. coming up, we have some brand-new data on china's economy you will need to hear, if you want. not insisting but interesting as the country reopens. check out shares of spotify as our parent company comcast

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covid-19 has china with new signs of life. we'll get to your comments that we're all before the big story from last night. so let's get your comments on the navarro saga and i'll just preface it with saying that we have seen dueling rhetoric from both sides, some of it pretty nutty in terms of these accusations from china, about where it came from, covid, even some of the stuff we've said over here that probably didn't sit too well with china. even with this heated rhetoric it's likely to be scuttled

is that a fair assessment? >> i'm not there actually. it's like dead man walking as important as farm commodities are for the president, at this point so much anti-china sentiment is fueling after the fall it's extremely difficult for the president to keep with phase one through the election navarro is not the messenger for its death nell quite yet >> if you asked him, he doesn't

think this deal can last until the fall because of the politics around the election. navarro jumped the gun at this point only one person's opinion on this matter because it's the president, he's not willing to walk away, from what could be a summer of soybean buying. >> in your view and many people's view it was a first step anyway. nothing was really decided upon so what part would be not acted upon the ag buys aren't going to come through? >> well, the deal was always very difficult to achieve from the very beginning very bold targets. post covid, the deal themselves. what they could see is certain ag targets exceeded, particularly politically important ones

the deal itself cannot work but certain aspects of the deal can work and even if they don't work, it might be worth getting a few more months of buys for the chinese. the president's mentally not there yet, but the deal itself is in trouble in d.c. >> so you do see the rhetoric on both sides taking its toll and i think you're also pointing out that it could be a -- on both sides, both vice president biden and president trump, that could be a point of where they're going to try to snipe at each other the president is going to say biden's too soft on china, he has a history of being soft on china and i guess vice president biden will have his own counter punch to that. this is going to be a political football during the election. >> absolutely. the issue of china is so tied into the issue of covid and the covid recovery because of the fact that the virus came from china they're one big issue. assuming it's 1a and 1b, this is

what the election is going to be run on the fact that the president sort of opened himself up to a deal that's not working is going to be fresh meat for biden. i expect this to get very, very good for it. >> they still have a contraction for the year that's not much of a recovery. they're also, in your view, shifting gears back to the infrastructure, building a bunch of stadiums that no one goes to again or empty apartment buildings? >> well, yeah. which is good. not nothing. the problem is if you look on year, the economy is still in a very deep recession. the numbers are nowhere near the neighborhood of what they used to be a year ago the chinese right now are looking at a lot of options that

weren't part of the playbook a few months ago even and one of them is going back to heavy infrastructure what we're seeing in our early data is a real rally in transportation construction. this is the first time we've seen this in three plus years. the chinese said they were going back to heavy infrastructure stimulus this is the first time we're being considered very strongly in beijing. >> you point out, we have to run, but you're not seeing a lot of people borrowing money at this point, which -- because maybe they're waiting things out. that's not going to help hardly. that would probably boost the economy. >> big mystery right now. >> leland, thank you we'll have you back to talk more and we'll be watching. the election is not that far off. >> no. >> we're all sitting here. we don't know what day it is winter's coming. >> winter's coming when we come back, we are speaking with senator pat toomey

about a possible new virus relief package and how reopening is going in his state of pennsylvania in the meantime, president trump just tweeting cases are going up in the u.s. because we are testing far more than any other country and ever expanding. with smaller testing we would show fewer cases well, yeah dot owi n'kn if that's the goal, but we will be right back. marco...! polo! marco...! polo! marco...! polo! marco...! polo! marco...! polo! sì? marco...! polo! scusa? marco...!

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stimulus hopes in china trade news lifting futures as coronavirus cases rise what investors are watching as we head towards the opening bell what the street is saying about apple's latest software unveil and if the stock has what it takes to keep its rally going. plus, the election and the markets. what investors can expect in the months leading up to the political event of the year. the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen.

take a look at u.s. equity futures. they have seesawed around overnight given some of the comments we heard from peter navarro. walked back related to china right now things are looking better up about 260 points on the dow. becky? >> andrew, thanks. unemployed workers have been able to collect an additional $600 a week under the krmp a.r.e.s. act that benefit runs out at the end of july. now congress is debating whether to extend it steve liesman has more details on this front. a lot of people who are receiving these checks don't realize they are going to end potentially at the end of next month. >> reporter: that's a big part of the discussion right now going on, becky. and the debate is really interesting. it's critical to the economic outlook what to do with this extra $600 on the one hand it's been credited with maintaining a high level of spending, even reducing poverty not to mention providing a major role keeping people

home you have the other side of the story, as there always is in economics, you're paying people more to stay home than they would get for some people if they went to work. that could dampen the recovery, it could lengthen the recovery here's the map by researchers from the university of chicago every single state workers are getting more than the average wage of the state. 2/3 of workers, in fact. you can see, you go through those states in the south there, arizona, oklahoma, arkansas, mississippi, alabama, all of those states have the highest, what they call replacement wage, benefits as a percent of the median wage. at the same time, states with the highest unemployment or replacement wage have not as a group seen a real surge in unemployment so this effect of keeping people home we're not seeing it yet in the data.

it could be something -- of course there's some offsets to this let's take a look at the offsets to the $600. one is people want to go back to work because they're concerned about losing their job in the tough labor market they want to get their benefits back they're not getting the money they should be getting because of state unemployment offices. let's talk about solutions that are out there. what should be done. democrats want to continue the $600 bonus all the way through january and the market remains very weak. return to work bonus which would incentive advise people to go back there's another proposal out there from some democratic economists to prorate the bonus for the state unemployment level. that should be something that's doable even though there's some of the systems that are pretty

decrepit there's an indye of increasing work share subsidies instead of firing people you end up reducing the workers of everybody and the government pays a subsidy it's worked so far hasn't been too many negative impacts, but there's pretty good agreement that this needs to change the incentive needs to change away from paying people from being home to incentivizing people to do that. how to do that and the timing is critical and nobody has a clear roadmap on that. becky? >> all right i'll take it, steve. thanks for more on the economic recovery, let's bring in our guest, senator pat toomey.

you're on record thinking in your state, in pennsylvania, the governor is going a little bit too slowly so i think you want to get to the economy reopened asap. are you -- with what we're seeing though across the country, does that give you pause about how quickly we need to do it or not? >> no, it really doesn't, joe. i think finally pennsylvania is mostly reopened. it's taken longer than it should have that's true in some other states, i'm sure, but here's the thing i think we sometimes lose sight of there was a very specific reason we put the completely unprecedented draconian step of shutting down the economy and forbidding people from going to work and having a livelihood that's an extraordinarily extreme decision made only because we didn't know whether in the absence of that decision we might overwhelm our hospital capacity so many people getting so sick so quickly it's my impression there are very, very few places anywhere

in the country where there is any real threat that that could happen and not even a single state. and certainly not in pennsylvania, nowhere close. so, look, we've learned that actually quarantining healthy people is not the best way to go we've learned in my state of pennsylvania this is really a disease of the elderly and nursing homes. 69% of all of pennsylvania happened inside the walls of a nursing home clearly we did not do a good job of protecting this population. the rest of the people who are not particularly susceptible have to be forbidden a livelihood indefinitely, that just doesn't make any sense. so i think it is time to continue this process. it doesn't mean we'll go back to the way things were in january i think people will be wearing masks when they're interacting with each other, keeping distances to the extent they can reasonably so those kinds of steps will

help. >> like so many things, there really is a -- the two sides are not going to -- crying in the middle, but there are people that think that one additional death is others to shutting down the entire economy when the initial idea was not to overwhelm the health care system >> you know, it's not clear about whether or not reopening the economy is going to mean additional deaths. this virus is going to work its way through our society. it's going to happen behave control over how quickly it goes but it's going to happen either way. >> that's the argument until there's a vaccine you don't get any herd immunity. you can't keep it at zero. like i say, you're not going to convince people on either side

they can barely find middle ground on this whole discussion. let's talk about the commission that you serve on and how we monitor the c.a.r.e.s. act still no chairperson of that commission is it doing the work it needs to do we just heard steve liesman's report, that is crazy that every state it might make more sense to, you know, in terms of what the minimum wage is, to stay at home than to go back to work. >> yeah, i think that is a very badly flawed policy. we're focused exclusively on the fed lending facilities that's a huge program. about $500 billion from the treasury to fund vehicles that the fed can then lend money to it's a total of several million dollars between the treasury and fed we're making available and our job on this commission is to just ensure that that's being done and help the clients with the law in a transparent way in

a way that's fair. you know, we don't have a chairman, but the four of us have been working together we've put out two full reports so far we're required to put out a monthly report under the statute. we have met that requirement we're going to meet later this week with secretary mnuchin and chairman powell in an informal discussion i hope we'll have a chairman that will certainly facilitate our work. >> anymore needed, would you say, not in terms of the fed but in terms of another stimulus you're on record that you think -- >> yeah. i'm not a fan here, joe. you know, we've appropriated about $3 trillion. we authorized the fed to lend even more than that easily call it $6 trillion. that's 30% of our entire annual gdp. fortunately we are starting to

reopen government spending can never be a substitute there's a point where all of this debt has been created, some of it has been monetized, that has its own price we're going to pay. we don't know when or how, this isn't an endless well that we can just keep, you know, dipping into and think there's no adverse cons is he kbepss. we've got most of the bed facilities not accessed even we need to understand better why that's the case. i'm not excited about yet another stimulus bill. >> if you were fed chairman instead of just watching what's going on, you would do basically everything that's been done? you'dgive the fed good marks. >> i'd give the fed very good marks. i do wonder whether they need a presence in the corporate bond

market since they're operating very, very well. in fact, we've got an all-time record of debt issuance. clearly the private capital markets have stepped in. we stood up a back stop. this corporate bond buying program that we authorized for the fed and the treasury is funded, it's there and it has, i think, reassured the markets to a very large degree. i'm not sure we need to have the fed going into the market and buying these bonds i think there's questions about the main street lending program. that has not been a drawn down significantly mid size borrowers. it's because these beneficiaries are finding access in the markets drawing down on credit markets and finding other ways to access credit i don't know that that's a fact yet. that's a theory that we need to

understand better, but by and large i do think the fed response to this crisis has been very good. >> are you going to keep the senate >> yes, we're going to keep the senate yeah it's going to be a battle though. >> i'm writing that down thank you, senator >> thanks for having me. >> you're welcome. we'll see you again hopefully soon becky? >> thanks, joe. when we come back, what the street took away from yesterday's apple event and the move to drop intel chips in macs before we take a break, let's get a check at the markets the dow futures indicated up 270 points s&p up by 25 nasdaq up by 67. the nasdaq has been up seven sessions in a row. we'll continue to see where that heads this morning "squawk box" will be right back. some companies still have hr stuck between employees and their data.

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welcome back, everybody. apple unveiling a slew of new and updated software at this year's annual developer's conference wwdc joining us with what it all means for the stock is will power. senior analyst at robert w. beare baird. you raised your stock price. what did you hear about that >> thanks for having me. it's the drum beat for continuous innovation. really a litany of updates and

upgrades across whether it was i0s, mmac os we have a lot of updates yesterday and they speak to that i think two of the more holistic, broader, long reaching benefits and continued focus on privacy where apple continues to try to set itself apart, i think they're continuing to see this pulling together of the different platforms that apple has, right to help drive that future innovation advicross the differ solutions. >> well, i was reading through your notes you obviously have this long-term growth case for the stock. you're obviously a fan of what they're doing, but i sense there was almost some reluctance you're raising your price target but it doesn't sound like you're saying jump in and buy with both hands. is that because of how far the stocks have run? >> the stock's at a significant move it's at an all-time high

valuation here on the other hand, near term this is a pretty good setup. we are still buyers in the stock. we would be more aggressive if there was weakness given the boom it's had. typically this is the time of year you do want to own the stock into the next product cycle. a big part of our event is on the 5g upgrade opportunity >> we've talked a lot about tension with china and the concerns that overall the united states and china may have with the trade deal and other things. something that's flared up again overnight. apple is one of the stocks that's consistently been in the cross hairs when the chinese government has pushed back is there anything that worries you about that relationship that could pop up and potentially punch a hole in the strength in the stock? >> well, look, that remains essential bushwhacker.

for apple they navigate those waters for a time. tim cook has been focused. they have a mutually beneficial relationship needles to say, a lot of uncertainty both with respect to potential demand over time to the degree they try to put some restrictions in place and from a supply chain perspective but, again, apple is a big employer via the manufacturing, production of iphones from china as well. you know, that's something we'll have to continue to monitor, right? apple and others that do business in china. >> well, i ask just because you say to buy on a pull back. if that pull back is induced by some concerns about china's intentions between apple and china, would you still tell people to buy on a pull back if that were the cause? >> all things being equal, the answer is probably yes our general view is we could

find a mutual solution if that were to change, we could re-evaluate. generally speaking to the degree there's a pull back that's of near term nature then, yes, that could present a nice opportunity. >> okay. will, thank you. great to see you we'll check back in with you because this is a stock we're watching pretty closely. >> sounds good thanks, becky. take care. >> you, too. joe? >> thanks, becky. coming up, in light of the pandemic, every nba player is getting a ring this year, but it's a sorkin ring, i think, isn't it is that what you have? is it an aura ring is that your thing >> that's what it is, an aura ring. >> can we see it you got -- >> this is it. >> it's a device that helps track data there it is. yeah, tracks data like temperature, heart rates we're going to speak to the ceo

of aura. sleep stuff, sorkin? >> yes, but it can predict whether you're going to have covid and seed if you need to get tested. >> the temperature stuff >> exactly >> and then the ceo of sanofi, paul hudson will join us to discuss the latest on vaccine development against the virus. sanofi stock just sitting off a 52 weak high ek high. because the tempur-breeze° transfers heat away from your body. so you feel cool... night af during the tempur-pedic summer of sleep, save $500 on all tempur-breeze mattresses.

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aura health, the maker of a smart wearable ring inking a deal with the league to contract the potential symptoms of coronavirus. joining us is the ceo of aura, harpreet rai a lot of viewers have seen it over the past year, joe gives me a hard time about it i wear this ring i get lots of people asking about what it is this is your ring. it's an aura ring. it tracks how you're doing i did okay last night. i got a 92 and an 87 on my data. >> wow. >> the more important part about all of this, i've been part of a study which you've been part of which is tracking whether the ring can figure out whether you're going to get covid. because of that study, you have now inked a deal with the nba. tell us about the deal >> yeah. thanks for having me on the show really appreciate it, andrew that's a better score than me

this morning yeah, because of our research that we're doing with the nba and other sports league businesses are trying to figure out how to re-open one of the interesting things we can see with the respiratory they felt like giving the players and staff an added level of protection and frankly peace of mind using oura was a good idea >> so how predictive is it i -- by the way, i take the survey every morning they ask me how i'm feeling and all of the things as part of the study that i think i -- any oura user, you just asked anyone on the app to to it proos the predictive nature.

>> west virginia university did come out and publicly say they that's sort of how this started was with our users every flu season we've had thousands of users email us, you know, take screen shots and many of them saying that, wow, i had a score of 90 this morning, whatever it was, wow, my readiness score is all of a sudden in the 50s or 60s i don't feel that bad. and two or three days later something will hit them pretty hard that's actually what happens here as well you know, there is one user of ours, he was traveling in early march and then normally he gets 80s or 90s all of a sudden his readiness score dropped to 50. that caused him to go get tested it was positive and we were

talking at ucff, that was published in finland >> so the nba is going to be buying how many of these rings >> yeah. it's a really good question. it's actually available for everyone that's going to be at orlando. frankly, i don't know the final number it's over a thousand all players, all staff, other people inside the bubble as they're referring to it are going to have the oura rings available to them. i think -- sorry, go ahead. >> no, you have to work with me on this. this is joe. this may be a naive question the days of biohabit, if i had a real time feedback of how i'm feeling, can i actually modulate my anxiety levels and my mental

well-being with this i think maybe a naive question but i don't -- andrew, do you ever do that you need to modulate so when you're feeling anxious or stressful. is it possible in real time? for me it's a numbering about sleep. if i can see it over the past week my scores are going down, it is a numbering. i decide i'm going to sleep early. not am i feeling terrible, but it's in my face. >> real time you can control your heartbeat supposedly if you have real time data and you do certain things ha harpreet can i do that >> we have a meditation in the app where it can do a check of your heart rate after that session. some of our users have been using that to frankly practice meditating and getting better at controlling their anxiety. andrew, give him a little more

credit than you are. the way most of our users use the app, they wake up and check their scores fair and accurate frankly not every day for andrew and myself is going to be a 90 on the days the scores are lower, you know you have a little piece of mind, a little reminder, hey, i'm a little bit behind the eight ball today. i'm going to take it easier. >> i wish you would disclose when you have a bad score? >> i'll give you my scores every morning. we have 20 seconds apple coming out with sleep on its watch which competes with the ring one of the reasons i got the ring because my apple watch didn't capture sleep are you worried about that competitively? >> i think apple is going to be investing in this area as is others i think the announcement yesterday for us is different. they're not showing your heart

rate, heart rate variability or temperature. that's something apple doesn't measure. we're not getting enough of it as a society there will be more of it >> harpreet, thank you good luck to you. >> thank you, andrew appreciate it, joe >> thank you, harpreet, are you willing to do that, some morning, just so i know. >> i'll give you the number every morning. >> i'll know whether you're in the mood to play around, whether if it's -- >> i'm having a good week this week last week not as good. >> how about the week before that >> where was it a month ago? >> yeah, exactly >> i'll check on that. i'll check on that. >> still to come -- >> i have a 63 one morning should find out about that. >> only fair i send you mine mine are down in the 30s. >> yours are 3repretty steady.

>> paul hudson joins us to discuss the company's r&d in paris. the covid vaccine development. and much more. then the political event of the year we'll discuss the presidential election stmpt too early market impact. futures up 300 solid "squawk box" will be right back.

welcome back, everybody. sanofi is leading the charge to develop a vaccine. clinical trials expected to start later this year. joining us with an update on where things stand is sanofi's ceo paul hudson. they hosted an r&d event this

morning. thanks for being here. great to see you. >> thank you great to be part of it we're here about to hold the r&d event. pretty exciting day for us >> let's talk about where things stand with the coronavirus vaccines that's what most of the world is watching closely this is a huge race. you have some pretty big news yourself this morning about where things stand with that why don't you walk us through the mrna vaccine you're pursuing. >> sure. today we announced a collaboration with translate bio and our team working closely with ron and the team on the future platforms one of them could be mrna in covid. that will come later the real push for us right now is our virus platform. we hope to be ready for patients before the summer of next year incredible progress as a team.

people forget sometimes that we're the only proven platform out there to treat covid-19. we need a little bit of luck we still hope somebody gets there, whoever it is, but we're going to play a big part of that in the first part of 2021. >> how do you anticipate that you will get approval by the first half of 2021 the clinical trials you're anticipating are the end of this year >> yeah. we will be bringing in patients of course in the fall. we'll move very quickly and working hand in hand we have 10,000 people working in our company in vaccines so we know how to do this, we know how to accelerate and we've really stepped on the gas very proud of everybody and what they've done much of that how we've stepped up across our portfolio and pipeline we have the r&d today. we've made tremendous process.

dupixin approved in children with atop pick dermatitis. treatment for copd tremendous progress across the board for vaccines and other break through medicines. hemophilia great data came out we've enrolled our first patient in the ms study in the btk we've done that in record time in this company. i mention that because the speed at which we're stepping up, we're not looking back, we're setting new standards. the r&d leadership is saying where do we want to be, how fast, how can we change the practice of medicine it goes on and on in breast cancer, rare diseases and importantly in oncology with our acquisition of synthorax what does that mean for cancer patients going forward we'll share biomarker data with

the r&d and we think that will be truly powerful. past my expectations in how fast we've moved in the last ten months. >> you shared some of the biomarker data today can you share any of it with us now? >> what i can tell you is i believe we have the best vast profile for aisle 2. there's never been any doubt that aisle 2 is playing a part it's doing it without antibodies, it's doing it without vascular leakage we think the team at synthorax cranked it we'll get to share that data in a few hours. >> you sold your stock in re jenner ron and that created some money for you to play with is that part of what this deal that you were talking about, the deal with translate bio, that's a big deal you'll be able to produce vaccines quickly talk about how that works out

and let's say with covid vaccine, how quickly could you ramp up? >> we have a good partnership with our good friends len and the team at regeneron and we will have for many, many, many years to come. there was a moment that was right to sell the equity it has to be right for both companies. for us it allowed us to take the equity out, roll it over a long phased process and start putting it to use to try to find, discover, or acquire life changing, practice changing medicines. today is a small part of that. we have a pre-planned rollout and watch out for the news flow. we think we're going to change the frac tis practice of medici >> back to the translate bio, how quickly can you ramp up vaccines if they're needed if you have a successful vaccine candidate that is approved and rolled out, there is a huge, tremendous demand for trying to

get a covid vaccine around the globe. how many doses would you be able to ramp up and how quickly >> well, from an mrna perspective, it will be later in 2021, but one of the reasons why we went deeper into this collaboration was because they have been on mrna for years, perhaps the longest of any of the companies. they know now to make it to scale which has never been done before with any of the companies. once we cracked it, which we think we will, we'll be able to get to large volumes very quickly. we wait and see how many waves we wait and see how many vaccines are successful. the world needs billions of doses. we want to make sure every country and everybody that needs that protection can get it we'll play a part with one and maybe even both of our vaccines. the translate biopartnership modernizes and takes us to the next level of innovation on top of the cool proven technologies we have. it's incredibly exciting times to be part of our vaccine

business and to be part of sanofi >> translate bioone, it's not just a partnership where you say, okay, we're going to work with you you're paying them some up front payments and as a result you're maintaining a stake in the company. what is it, a 7.2% stake you hold in translate bio? >> yeah. you know, we had a great partnership for a number of years. we added the covid-19 play earlier this year and when we sat down with ron and the team, it's like how to do this so that both teams are operating in an aligned way and really pushing the boundaries we believe in what they're doing, of course we do, which is why we were happy to take a small stake in the business. a more genuine statement of our belief and confidence and i think it was good news for them as well when we all decided to go ahead >> hey, paul, thank you for joining us this morning. i know it's a busy morning for you. we appreciate your time ahead of the r&d meeting. we will be looking for

additional updates thank you for your time. >> thank you very exciting day for us >> thank you andrew >> okay. thanks, becky. coming up when we return, your money, your vote. we're going to talk about possible updates with the election take a look at today's s&p winners and losers we'll be right back. stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

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welcome back futures are indicated up

if they close up for this month, that will be the third month in a row. dow futures are up s&p futures up by 30 the nasdaq up by 76. prices have also ended higher. they told us yesterday above $40. this morning wti is even higher. joe? >> thanks, becky coming up. we'll look for the political event. they're predicting and whether they have moved and are reacting there are probabilities at the top of the hour. apple sitting at it says here a 52-week high tech giants developer's conference new products, plans to ditch

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the market is watching the race for the white house predict it shows joe biden with a 57% lead let's talk to a washington policy analyst with raymond

james. there might be a reason why we haven't seen much, ed, in terms of market reaction because it's early, number one. the numbers that we're talking about here, so now for the white house in your view up 5% on the probability of vice president biden winning, 55% i think hillary was 98% the night before so 55 four months before, i'm not willing to just say that that's -- that that's done i think it would make a big difference if the dems captured the senate and that's up 10% it's now at 50-50. so what am i supposed to decide? what moves do i make based on that obviously the house is probably going to say where it is here's what i'm getting to is the market not moving down on the possibility of higher taxes and pulling back some corporate gridlock at this point is that what we're assuming now?

>> i think what we're assuming is we are in already the fifth election defining moment of the year we started off the year and everyone thought it was going to be impeachment or the death of general suleimani. then it was the civil unrest we have a long way to go before november and, you know, i think looking back to 2016, people are very cautious about deciding elections before they actually occur. i do think if the market is under pricing something, and this is based upon the surveys we've done here at raymond james, i don't think the market is thinking that there is a high percentage chance of a democratic sweep we would disagree to a certain degree because ticket splitting is dead and if joe biden wins the presidency, his probability of winning the senate majority as well is pretty high

joe biden, he's not bernie, right? he doesn't have the negatives of hillary. i don't have a strong feeling. i disagree is the market by not going down if biden, if his chances have really gone up is that because there's going to be gridlock or because, you know, not necessarily the president does that much overall from what happens in the markets and the economy? what do you think? >> well, i think what's interesting, at the same time that it appears to be odds of a biden presidency has gone up and the odds of a democrat taking the senate have also gone up at the same time, the biden campaign has been saying, you know what, if we get in, we're going to be way bolder than what we've talked about one way to look at it, whatever biden has talked about so far on taxes and everything, maybe

that's the right side of the spectrum and he only goes left of there why aren't markets freaking out more about it? one, it's early. two, is it just as on to figure out, gee, trump wants a 21% tax rate, biden wants a 28% tax rate trump is better for the market if i own a big tech stock, i care about the tax rate they pay. i also care if they're going to be able to higher high skilled immigration from over seas that's probably a pretty big factor in their plans. that under a trump administration, that looks a little iffy right now. >> so there's -- i'm trying to read between the lines for what you're saying here if there is a sweep, would that be a negative for the economy? you're saying not necessarily, i jimmy? >> are there negatives i think a higher corporate tax rate is a negative lots of new regulations. i also think trade wars are

negatives and i think saying, you know, what we're going to make it a lot harder if you're a skilled person from over seas to come to america and work at google or apple, that's a bad. >> i've got it, there are tradeoffs, but net-net you're at the aei and you're willing to say a democratic sweep wouldn't make that much of a difference from whether or not there would be still republicans stopping some of those plans from happening? really >> listen, i would much rather be at 20% tax rate than a 40% tax rate so that's a bad not being able to hire, you know, immigrants at google, that's a bad for google. i have not done the calculation to trade those two off i'd be pretty concerned about both >> okay. >> yeah. >> how about you >> joe, i think what he's getting at, a, no one's proposing a 40% tax rate so the market does not even have to think about pricing that in. kind of the other thing that we're really looking at here is

the need for kind of continued fiscal support to this economy and what we're seeing right now is base four, it's taking a lot longer than some economists would suggest. what jay powell was saying was needed if there was a democratic sweep, the probability of continued fiscal support goes way up that's something the market has said to support the consumers and the companies on the stock exchange so congress with a democratic president and a democratic majority is absolutely far more likely to continue that support than a status quo or a republican sweep in november >> then we get back to -- >> we're not going to get deficit reduction. not going to happen. >> then you get back to whether we hear now that some people, they're far and few between, the people that still worry about

big debts and big fed balance sheets are pointing to some day of reckoning just add more fuel to that fire, ed, whether it comes home as a special disagreement people think mmp is something we may never have to pay ffr. >> right so keep the party going, jimmy the stock market never looks back and says, wow, we're at 40 trillion or something and unfunded what are we at with medicare and social security what if we have medicare for all? if he does tackle that and changes his view he's not going to do that, jimmy? >> no. democrats, functionally, they're functionally an mmp party. i think there are people who look at japan and say, wow, their debt to gdp is over 200% we have 100 percentage points of

fiscal space that's going to be a wild experiment it will be unbelievable to cover on cnbc. whether it's unbelievable to live in that world as we run that experiment, that i'm less sure of. >> both of you gentlemen figure if those odds and the predicted odds, as you said, they're at 58 right now, if those get up to much higher levels and if people -- you know, let's say it doesn't turn into 2017, let's say these numbers are actually right, you don't see the market ever taking a pause if it becomes clear that there could be a democratic senate and a democratic leader in the white house? >> no. i think -- >> go ahead. >> go ahead, ed. >> that's very clear what we highlighted in the note is that heavily regulated industries are going to have volatility when there is a kind of one-party rule under democrats, health care tends to under perform the year after the election do we see another kind of

wholesale look at financial regulations, especially after the fed twice in 12 years have come in and bailed out the credit markets and what happens in the non-banks is there a change in climate regulation is there a push for kind of something along the lines of a green new deal that adds to some uncertainty in energy? absolutely however, kind of i do think you have to divorce yourself from a knee-jerk reaction one candidate good, the other candidate bad. it's a much more nuanced situation. we're in unprecedented economic times and the outcome of this election, donald trump has been a very atypical president. >> give you the last word. >> i'll say this, the more the biden campaign talks about that they've accepted that we need a revolution in america, then i think the odds go up that as we get closer to the election the market thinks, does it want a

revolution do we want a revolution in immigration. then we'll see >> if they announce that aoc is the next treasury chairman -- treasury secretary and fed chair, she's going to do both, would that be okay with both of you guys, i think. >> i think that might be a slight negative. that's not going to happen. >> you faux goper. >> i'd never get off television. >> aei, is that old? is that still back there i mean, you've got to -- >> i love low taxes. love them. >> what about brookings. what about brookings they're signing on -- >> joe, that's a hurtful thing >> anyway, thank you both. >> thank you. >> ed. love both of you guys. we have to have fun occasionally, don't we we've been through this. god almighty thanks, guys >> thank you >> andrew. coming up when we return, apple hitting an all-time high

after unveiling new software and announcing it will be using its own chips. we'll have the details and what it means next. later, the ceo of docusign that stock is up to more than 130. big hour ahead ick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. get 0% apr financing up to 36 months on most models, and 90-day first-payment deferral on any model.

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to help support digestive health. good morning, futures pointing to a solid gain a top trade advisor for president trump spooked the markets by casting doubt on the u.s.-china trade deal. apple with the software that powers billions of devices around the world announces it's

going to jump ship from intel when it comes to its mac computers. what does all of this mean for apple's customers. red hot acceptor and your portfolio. special interview with the head of one of the companies at the forefront of the work from home revolution. docusign ceo is going to join us live the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin how's the ring, andrew how are you feeling right now according to the ring? everything's good? >> by the way, there is a way to monitor your -- everything in real time. i just haven't used that

feature. i can start doing that right now and find out >> andrew, that was a very hot field. i don't know if it still is. controlling everything -- supposedly there's a way that you can actually feel how to lower your pulse. >> oouuhmmm. >> take a deep breath. u.s. equity futures are up 305 points that's good. that lowers anxiety. not for the bears obviously. they're probably at a fever pitch watching this happen nasdaq up 70 points. pretty solid nasdaq up 29 if people had told you seriously that the federal debt would be where it is and that the fed balance sheet would be where it is and that the 10-year would be below 1% would you just wonder -- you probably wouldn't believe it, right, becky

>> the 30-year at 1.5%, whew. >> nothing makes sense anymore >> yeah. >> we watch it play out every day. the wild ride last night came from comments from peter navarro appearing on fox news where he seemed to cast doubt whether the u.s.-china deal would be around going forward. >> do you think the president -- he obviously really wanted to hang on to this trade deal as much as possible he wantedthem to make good on the promises because there had been progress made on that trade deal, but given everything that's happened and all the things you just listed, is that over >> it's over >> it's over that comment sent dow futures plunging 400 points but they recovered pretty quickly because it's not over. in a statement after that program aired navarro said his

comments will been taken wildly out of context and he was merely pointing out the lack of trust president trump also weighed in on twitter saying the china trade deal is fully intact hopefully they will continue to live up to the deal. you're seeing the dow futures up by 300 points. that's a 600 point swing, almost 700 points when you watch the kind of chaos that played its way through the markets. >> let's talk tech tech as most valuable company hit a high up 60% it came as the company unveiled a number of new iphones and m a

c items. they don't need new things they need to keep doing what they're doing, i think, josh >> reporter: so, joe, apple boasts 23 million registered developers ahead of this big developers show we know there was tension with some of them who complained about app store fees but ceo tim cook taking the stage and instead focusing on the many new features developers can now expect for example, i0s 14 with improvements to imessage, siri, maps car key will let drivers use their iphone to unlock and start their phones watch o.s. 7, that was unveiled, too, adding sleep tracking features the software showed the big headline might have been hardware apple says it will launch macs with chips designed by its own engineers rather than intel processors >> our vision for the mac has always been about embracing

breakthrough innovation and having the courage to make bold changes. every time we've done this the mac has come out stronger and more capable and i have never been more confident about the few turt of the mac than i am today. >> for apple, analysts say this should mean improved performance and they argue reduced costs how about intel though he doesn't see this as a critical financial hit yet but there is a broader strategic concern he says because it could offer more opportunity for intel rivals like arm. back to you. >> josh, thank you stick around want you to be part of this next conversation apple trading even higher in the premarket today. want to bring in amit daviani. he has an outperform on this, $379 target on it. tell us where you think this is headed and how impressed you

were, or not, with yesterday's performance. >> in terms of performance yesterday, i would say these were incremental they had across the software stack it was to make the ecosystem more sticky. apple's had modern stacking. in terms of where the stock can go, listen, our bold case on this is the stock can work all the way to $500. variables continue to grow double digit and i think the combination of that would mean apple can see mixed revenue growth, low growth with hopefully a lot less with the volatility in years past. >> josh, one of the things that's so interesting is you could hear tim cook say he was

doubling down from the mac it appears from those of us who have mac is and live in the ipad world that these devices will be able to come together. do you ever think there would be one? >> there was some hot talk about there was a potential collision course for those two products there. i thought the mac was just to follow what he said was really interesting there. purportedly this plan had been in the works for some time apple designs chips for iphone and ipad it's the mac's turn. you can understand why people who follow apple liked what they heard. that gives tim cook more control over the product it should mean improved performance and reduced cost it will cost less to design your own chips than farm that work out. i spoke with tech analyst patrick moorehead as well. he used to weigh in and see what the developers used to think of that new chip, that new technology before sounding the

all clear here i think it's interesting both what it means for apple and intel going forward. >> amit, we're all going to be watching sales come, i imagine the late third, early fourth quarter of this year with the new phones which are expected to be part of this super cycle. what do those numbers have to look like for this stock to be where it is today? >> yeah. you know, i think everyone is on the 5g cycle people expect when i talk to investors up 5 or 10% kind of range. that is what i would say the wing would look like to keep the momentum going on the name at least. >> and, josh, you know, one of the big issues had been a regulatory question whether washington will act against big tech or apple.

one of the interesting things that also happened, seemed to get a little over shadowed, is the changes in how the app store and the app approval process and appeal process will work do you think that is going to be a game changer or change the dynamic in terms of whether washington would act or not? >> so, yeah, that's a real interesting point, andrew. this show did feel different i've covered these shows for a number of years right now. there was this backdrop of tension with some developers and prominent developers david hanson is one of the guys behind that email app hey that apple initially rejected he is a big name in tech he was clearly furious it sounds like hanson's company and apple have now at least called a truce for now apple didn't want that kind of fight to certainly snowball. the real risk to point out is regulators we know e.u. regulators point out an antitrust

the question is what happens here there are big-time lawmakers david sicily, he told the berge that the apple fees were highway robbery. it has plenty of friends in the white house, too president trump has referred to him. >> how much do you think the sales will get pulled forward? the reason i ask is in a remote first world where people may be working from home, you know, kids doing school from home and the like, how much of that do you think has already happened how much of that may happen again in the fall when people need to upgrade ipads, computers, phones, the like investing much more in technology than using disposable income for other items >> listen, it's a great point. what i say is my gut is very little of it from an apple perspective has happened so far.

maybe we bought a few macs that we did not expect to buy or a few ipads. i would argue what would happen in the next 6, 9 months, we've spent way more time with our iphones than we need to. we want to upgrade to a better screen, better processor a lot more quickly than possible my gut will be the next cycle will be ending up tricking the next cycle with iphones. ipads could see a resurgence especially in the educational world. plan b, everyone has to plan on being home for a long time. >> finally, we'll get earnings next quarter is it just going to be terrible? are we supposed to look through them how are investors supposed to think? >> our thought would be holdings would be somewhat better if you look at the order of the way new

stores are opening up incrementally better barring the announcement we had last week. generally speaking stores opening are better services has a growth versus the guidance of plus 15. my gut would be you get a nice beat from them versus anything else. >> okay. amit, josh, thank you very, very much for walking us through all of this this morning appreciate it. becky, over to you. >> andrew, thank you. when we come back, the ceo of docusign will join us live. he has an up close look at the work from home environment and how much things have changed during the first few months of this pandemic. we'll take a look at their stock. it hit an all-time high. that ceo interview right aerft this break stay tuned, you're watching "squawk box" right here on cnbc. you should be mad your neighbor

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there had been some interpretations in the market that maybe there was you can see in the last half hour or so we've seen an extra leg up from the futures and are seeing quite a bit of strength same story with oil prices oil prices closed about $40 a

barrel for the first time since the whole lockdown began back in early march. if you take a look at the biggest dow gainers, american express, goldman sachs, exxon mobil is also on the board because of the higher oil prices earlier it was marathon oil. joe? >> thanks, becky the pandemic accelerating the worldwide economy's docusign the company helps people sign contracts and agreements electronically this is part of jim cramer's covid-19 index has more than doubled giving them a market cap of $30 billion

yesterday docusign replaced united airlines in the nasdaq 100. joining us to talk about business pandemic is dan springer great to have you. i wish i wasn't such a strong metaphor, you replacing united it makes so much sense in terms of the pandemic. one company so hard hit and then as far as your company, almost a poster child for what cramer and the rest of us talk about in this stay at home world. almost custom made for that, i guess. >> we've been really pleased about the growth we've had since we went public a few years ago we have, as we talked about our last earnings call, seen some acceleration as you mentioned from some of the covid-19 pandemic, it's a horrible pandemic and our number one priority has been the health and

well-being of our employees so we can take good care of our customers. as you've seen in the last q1 earnings, we saw increase in billings by 59%. a significant portion of the increase was from increased use cases of customers driving the digital transformation faster, accelerating that faster with services like us. >> 59% all the numbers are in the stratosphere when we look at the stock market, people say fed, fed, fed. it's not all fed with your company it seems particularly well suited for this environment what does the future look like for you? i like it. i use docusign i may never have to leave my house to find a notary and do all of those horrible things it makes it so much simpler that

even without the pandemic i don't see how we go back to business as usual. >> i think you're right. one of the things we've seen with the pandemic impact, it's accelerated the path companies were already on to drive the digital transformation we don't see someone after a pandemic, we hope that's soon of course, after that settles down going back saying i want more paper, more manual processes once they've got the benefits from the efficiency, better customer experience and better employee experience, they're going to stay in a digital transfer world they're going to use docusign and other fantastic service toss do that. we think the world is going to be the signature center. companies want to be more agreeable. they want to be easier to do business with and easier to do business for they're not going to use docusign for signature and preparing the agreements, managing them digitally once they've been created and that's why we're excited about our very

robust offering. >> could i factor out expo necksal growth all the way five years from now what are the new businesses that can come from where you are now? what are you working on that transform what you think of for what docusign does now >> let me give you a couple of examples why we see the rosie growth going forward you talked about a signature, which a lot of people think of as a more mature business because docusign has a strong leadership when we went public, we talked about the $25 billion tam we saw there. we're only 4% penetrated today we're six times larger than the next big jest player in the space. there's not a lot of penetration yet on that core business. you mentioned notary a second ago. great example. notary is still fundamentally

done manually, visiting people's homes, going into centers. even expanding the pond for the signature is the prodder agreement cloud opportunity. we think this is the next big cloud opportunity and you're going to see companies increasingly saying, i don't want to coudo the workflow. i want to think about the artificial intelligence and search capability to manage my agreement to run my business and make my company a more agreeable company to do business with by leveraging docusign. that's why we finished the acquisition of seal software so we can bring additional analytic capability to help people run their businesses better. >> the open source catalog that you recently -- what -- how positive will that be?

how much could that add incrementally if it's developed by, you know, people out in the developer community? >> yeah. pretty significant opportunity in a sas world, interoperability is key almost 60% of all docusign transactions occur not because someone has logged into our award winning web portal, they built api calls. they're automatically generated by our other system. they're integrated with the other key sas systems. salesforce.com they integrated their software into docusign so our end joint customers can have a better experience let's let even more people develop great apis and encourage the interoperability >> $30 billion even for you i'm sure you

thought, wow, i'm in a great place. did you think you would have that kind of market cap? >> i've been super bullish on the opportunity at docusign. from the beginning i said this was going to be one of the next big and important opportunities. i do see the opportunity for the greatness. if you've asked me to put a market cap valuation at this point in time i probably would not have been quite this high. as you've said, it's been phenomenal i leave that expertise for folks like yourself on the market. just try to focus on driving our customer success >> all right i mean, everything is surging obviously, but what about profitability? >> we actually have the same perspective we had for the last few years. we put together a model, a long-term model of 20, 25% operating profit that's where we thought we would be while maintaining our very high growth rates.

i'm talking long term after we slow down. we've had manageable efforts to do that and we've had significant success each year since we've been public and moving towards that. we're on track this year with the guidance we just released continued having higher growth as we raised guidance. also maintaining that same path of profitability so i don't think we see that is going to be a balance. i think the scale is going to naturally create that 20, 25% operating margin while we're continuing at a high rate. >> thank you amazing. >> thanks. >> looking at that chart during the pandemic it obviously makes sense. appreciate it. hope to see you again. fill us in on your efforts thanks andrew. >> okay. coming up when we return, tennessee senator lamar alexander will join us here on "squawk box" ahead of a big hearing in congress on lessons learned so far from this pandemic and how the country gets ready for the next one.

as we head to a break, take a look at shares of starbucks. the company rolling out its impossible breakfast sandwich. in stores today jumping head first into the plant-based meat wars you don't want to miss an interview tonight on "mad money. stay tuned, you're watching "squawk box" on cnbc can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

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welcome back to "squawk box" this morning take a quick look at futures going to open 1% higher across the board. 1 1/4 percent higher when you think about the dow. then we have oil i don't know if we're going to show oil oil is up 2% as we look at these things there's often a correlation. take a look at the biggest pre-market gainers in the s&p 500 right now as well. you're looking right there. >> a few stocks to watch this

moving sorry. sorry, andrew. we were watching those things. we also have some stocks that are on the move this morning that we've been watching spirit aero systems down in the premarket. that company is asking its lenders for financial relief as it deals with the fallout from the covid-19 pandemic. spirit makes aircraft fuselages and is boeing's largest supplier that stock is down by 5% here's view come cbs they will debut their new sponge bob movie earlier this year bypassing movie theaters "sponge on the run" will be available via pay purview and then move to the cbs all access streaming service. that stock up by 2.1%. joe? coming up, is it possible that deal making stages of recovery in the second half of the year going to talk about what's in the pipeline with citigroup's co-head of capital markets

next though, tennessee senator lamar alexander on the spiking case count and what congress plans to do about it reminder, you can always watch or listen to us live on the cnbc app. stay tuned, "squawk box" will be right back

welcome back, everybody. the u.s. continues to see alarming new levels of coronavirus cases. according to john hopkins university the u.s. has 2.3 million infections with more than 120,000 deaths. later this morning the senate health, education, labor, pensions committee will hold a hearing about the lessons learned during this outbreak and service of preparing for the next one joining us ahead of that hearing is senator lamar alexander he is the chairman of the senate health committee senator, good morning. >> good morning. >> not the best of terms to be sitting down and going through all of these things but i guess it is very important to try to figure out what we've done this time around to prevent that from happening this time. what have you learned so far what are you seeing? >> well, what we've learned is that we need to focus on tests, treatments and vaccines. doing a pretty good job of that

right now. they're coming faster than we ever have before what we're trying to do this morning is say what did we learn to do to prevent the next pandemic we've learned about the stockpiles, how do we strengthen the state and local systems. who's on the flag pole who's in charge? is there any way to have a supreme allied commander whenever they arrive we know they're coming, we just don't know when. >> it seems that the federal government kind of let a lot of things slide there have been times in the past we've been concerned about this i know president george w. bush was very focused on this and concerned about it, but i guess it's hard to continue to allocate money as years go by when these outbreaks don't come. how do you think we should be thinking about these things?

we don't always know where the next one isgoing to be coming from what's the best way to set up a process? >> that's why i think we should do it now while the iron is hot. we should pass this year whatever we need to do to accelerate the test, treatments, vaccines the fact of the matter was this virus surprised even the experts. you know, march 1st six weeks after we knew about it "the new york times" wrote most experts think we're as well prepared as any country to deal with it. most experts think it's unlikely to reach most parts of the country at the same time we underestimated it so the thing to do is to do it now. to make the decisions now about surges, stockpiles, leadership, tests, treatments, vaccines. we have a very fleeting memory in this country. we go from one crisis to the next four months ago we were in the midst of an impeachment. now it seems like ancient roman history. this will pass, too.

now's the time to deal with it >> what do you think happened? was it we weren't allocating enough money for these situations we didn't have someone in charge who was supposed to be leading up the command on all of this? we let things i guess fall by the way side at the cdc? where do you look back and say, i wish we would have done this differently? >> it's not so much hindsight. i think this is a new virus. i think the experts were surprised by how contagious it is and how it travels silently without symptoms as dr. fauci said, it's his worst nightmare. no one expected anything quite like this. the last four presidents and several congresses have passed nine major laws doing everything from building manufacturing plants to putting somebody in charge of the department of health to creating stockpiles, all these things what we need to look at today is what could we do better even if the kind of virus that might

surprise us like this one did. >> we have been talking a lot over the last recent -- or in recent weeks about what comes next in terms of additional spending to deal with this pandemic while it's still here we had seen a lot of spending that's put into place, but obviously there are businesses that have been shut down for incredibly long periods of time. people who have lost their jobs and we don't know if those jobs are going to be coming back. states and municipalities that have suffered from a loss of tax income what do you think needs to be done next? the president has talked about potentially $2 trillion plan that's been -- and what's been reported would you be in favor of that? >> well, i'd be in favor of two things one is, anything that we can do to accelerate tests, treatments, vaccines spending a trillion dollars isn't a problem. this is an economic problem. this is a disease problem. as soon as we have a treatment so people know that they're not likely to die or they will

recover faster, those should come this fall as soon as we have hundreds of millions of vaccines, those hopefully will come the first of the year it has to do with treatments and vaccines there are 130,000 of those and our colleges and about 6,000 of those. they have the money they need to open safely in the fall. it assures the step back to the country is going 70, 75 million. they need to go back i'm for that >> that's pretty good. the income is coming in. there's going to be a crunch with a lot of states

the school preparation for those things it could mean some pretty extreme steps, particularly if you're trying to set up classrooms >> well, the answer is yes to your question. it's estimated it would take 50 to $75 billion to properly equip the 100,000 public schools with extra money for bussing that's caused by the new schedules, protective equipment, testing, any other thing. we should spend that money for schools and for colleges actually, schools and colleges ought to be able to be among the safest communities in our countries. what you have to do to manage this disease we know distance, masks are two of the things that you have to do and washing your hands on colleges there's a lot of room in colleges they don't teach saturday,

sunday, and they can spread things out, you can wear masks, wash your hands and young people are much less affected by covid-19 than older people so colleges and schools should be among the safest places to go and when we go back to college and we go back to school, the country will begin to move back towards normalcy >> colleges, a lot of them have looked at this and said, we're not sure how we can handle it. some of them have announced they will not be holding classes in person in thefall. others won't be having students back to campus because if you try and figure out how to house those students, tough to do that and socially distance. >> well, first place, 40% of the college students go to community colleges and they don't live on campus only about 15, 20% of college students live in dormitories actually, most colleges are planning to reopen in the fall california's an exception. california state system said

they'll only do online teaching, but take for example purdue university, they've got 55,000 students they're going to open in the fall in august and they're going to end before thanksgiving so students aren't going back and forth. they're going to require masks just as vanderbilt has said it will brown university is going to open there's an eastern school. i think most colleges are going to open and the schools have to open the kids can't take another year of this. they're not learning when they're home teachers aren't prepared to do online teaching. parents aren't prepared to do home schooling kids are going to take a terrible blow intellectually if they don't go back to school >> i hear you. i have four kids myself and i would love for the kids to go back to school it does raise questions though if you have grandparents who are living with you, if you have anyone else in the family with

an underlying condition how safe that's going to be i realize most kids don't have the same reactions to the coronavirus that older people do or people with underlying conditions, but, you know, the kids tend to live with people who might have some of those issues along the way i guess the question is how do you make sure it's safe? how do you make sure they're following these guidelines if you do see some sort of an outbreak, how do we handle it? >> well, if you see an outbreak in school, you do what you do with an outbreak of the flu. we have flu every year we have 40 or 50,000 deaths on average from flu in the united states every year. we've learned to live with it and deal with it while we search for a universal flu vaccine? you close the school for two weeks. you don't close the whole school system, you close that school. that's why we need widespread testing, particularly of the teachers, the older people we should be having tens of billions more tests by the fall so that would be possible.

then you monitor the children. you check their temperature. there is a risk of going back to school in my view there's a greater risk of not going back to school and the damage it will do to the children and to the parents and to the economy >> yeah. understood on all of those points would you stop things like school sports as a way of trying to make sure it's less likely to see an outbreak? you hear already about some of the football teams for the colleges in the southeast that have seen a number of their players that are practicing right now test positive for covid-19 would you take that risk and say it's okay to go with sports, too, or would you say forget the sports, let's make sure they're learning >> well, it depends on the sport, depends on the community you're in, depends on the circumstance for example, in a lot of communities even in new york they're opening summer camps in tennessee they're playing baseball that's not as much contact

as we go along in football, i don't know if we'll have football, but i do suspect we'll be in a position in the fall to be able to test every player every day. so if you have widespread testing, you may be able to have some sports. i think it's more important to have school and to give the children a chance to learn and the students a chance to go back to college and we'll do that in a safe way we want everyone to be safe but we want them to thrive as well that's what the tennessee education commissioner said. i think we will. >> senator alexander thank you. that's a lot of food for thought. appreciate the conversation this morning. it's good to see you. >> sure. good to see you as well. >> thank you joe. >> thanks, becky. coming up, citigroup's co-head of banking and markets joins us with his take on whether deal making has any chance to pick up in the second half of the year meantime, check out the futures

solidly in the green as they have been for most of the morning. up 364 on the dow and nasdaq up 73 you're watching "squawk box" on cnbc ♪ ♪ ♪ ♪

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welcome back to "squawk box. we told you about president trump's order blocking visas for skilled workers. like apple, the nation of immigrants has found strength in diversity. there is no new prosperity without both deeply disappointed by this proclamation apple has been one of president trump's favorite executives in america running a big business in this country. they have differed though on many issues over the past several years. becky? >> andrew, thanks. when we come back, jim cramer's first take on the

trading day ahead. then what to watch in ipos and deals in the third and fourth quarters let's take a look at the biggest pre-market gainers up by 337 points that's off the highest levels we've seen this morning. stocks like nike up 2.4%. j.p. morgan chase up 19%.8 raytheon up a similar amount "squawk box" will be right back. feels like there's no barriers between departments now. servicenow. the smarter way to workflow. and their financial well-being. since our beginning, our business has been people. it's evident in good times,

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let's get to c nbc headquarters, jim cramer is here market is up again the fed is helpful, but you've pointed out there are stocks like stay at home stocks why the cramer index, the covid index,

where it makes sense we had dock yu sign on, how many of an allegory is that, docusign goes into the nasdaq 100, united comes out. it's like there is it is in a nutshell my question is when do you put on the trade short docusign and go lover united? ever >> docusign has moved up so much even in the week since i have had them i think that, yes, if you doa vaccine what's about to occur would be a great short moment, but i was telling docusign when i had them on, i bought a house, i didn't know i bought it, i had like, you know, sign -- i did three docusign documents, before it used to take your whole day when i was finished i said i own a house, how did that happen docusign it cuts out a lot of people and it is a terrific way to do business with you at the same time every time someone new does it do you go buy the stock the thing is just insane.

>> you point this out, you usually don't say stuff like this, i'm getting tired of paypal, square, fastly and so many others going up premarket does there come a time where this is just overdone? >> yes. >> do you think? >> yes >> when is it? >> i think it comes at a time when we realize that covid is going away, which believe it or not it will because i think we will get a vaccine, i don't care if there's people that say that j & j and pfizer and regeneron and glaxo and oxford don't know anything, then you will be saying why was i paying this amount for companies that, you know, i can go out again and do things but we're not there yet. how do you like the fact -- i had fastly on a couple weeks ago, that stock is up 40%. nothing happened. >> right. >> that's the thing. paypal did not make the quarter, okay square missed the quarter. you're just paying up and up

for -- it's not even -- it's not even priced earnings multiple appreciation you're just paying up because you're paying up it's pure momentum those companies missed the quarter. >> so the two legs of the stool, one is the fed and the other is just momo out of control. >> momo. >> neither of those seem great for a market to go up every day. >> we know it can last, 1999 when you have had these circumstances before there have been things that go wrong. >> right >> they just do because you can't have a stock go up every day on nothing. >> as phil lebeau looks to say, we need to keep that in mind. >> navarro did his best shot to get the market down. >> loose lips. becky has a question for you, jim. >> not a question as much as a comment, jim i want to say i loved your

interview yesterday with erika nardini and dave portnoy and penn gaming. love to see. those are tough to do with a lot of people in remote locations but i learned a lot from it. >> erika, she knows sports better than anyone when i asked her about the nfl -- >> i love her. >> -- that was not a great answer it did not found encouraging i immediately got very down about it >> yeah. maybe we will have football. >> at least eight-game season. i will take that four kids. she has four kids. >> yeah. >> best thing that could happen. you are so lucky fantastic. >> it is >> baseball, football, yeah, i see that football may be a little bit more -- otherwise does that make the astros the reigning champs >> yeah, it does >> all right

thanks, jim. >> thank you, guys >> ander >> okay. thanks meantime, the coronavirus brings deal making to a bit of a streechg halt. not a bit. a screeching halt. u.s. and global deal making a down double digits across border m&a has had its slowest quarter in seven years and private equity deal counts are down more than 20% of deal volume our next guess says more than 40 plus ipos from priced for $20 billion and that is in the aftermath of the shutdown. for more on all of this we are joined by tyler dixon, the co-head of banking, capital markets and the advisory division at citi good morning to you. what do we think of these two pictures, the ipo picture on one end, the deal making on the or the.

there was a view companies would be jumping to buy companies that were challenged and struggling maybe they haven't been at challenged. >> there is a real difference out there. we see the capital markets being quite resilient. we have navigated the period of market volatility successfully, right now market fluctuations have stabilized significantly in the second quarter we have seen record levels of debt issuance. q2 was an all time record. we are looked at a broadening out of activity at the equity capital markets and into the loan space more quickly than we anticipated. the kplal markets have shown more debt and resiliency that has allowed the ipo market to much much more active than what's happened. q2 has been a story we have seen more ipos, heavy amount from tech and biotech, broadening out across many sectors. we've seen 40 ipos greater than

$30 billion and they have been priced above expectations and the first day aftermarket is averaging 40% up there is a constructive view of the capital markets and the m&a market usually follows the equity market. >> yes and no. sometimes the m&a market is sort of a backward indicator of where things are, but let me just ask you this, then, on the m&a side is the problem valuations in a market where the stock market is going up every single day, i assume if you are a ceo either thinking to sell, you're thinking maybe i should wait because maybe my stock will be higher and if i'm a buyer you are thinking these prices are getting out of whack. >> i think both are on the minds of ceos and boards but i think corporates are agile they move quickly to secure liquidity at the front end of this crisis and they are focused

on business resiliency right now. are their supply lines too long? how are they thinking about delivery and purchasing. how does the demand curve change post covid and how should they be reacting? there is opportunity for defensive m&a, companies preparing in advance of activism or private equity moves. asset sales -- >> tyler -- >> -- m&a. >> what do you think about valuations >> i think valuations -- by the unprecedented stimulus, by governments around the world and i think increasing confidence as mr. cramer suggested about reopening economies, both of those dynamics are pushing valuations higher. i think we will naturally given the environment see a lot more careful deliberation in the m&a market but i think it's natural -- >> what i'm asking -- tyler --

tyler, when you're making presentations to the boards of your clients and running through your comps relative to other companies and looking at the valuations over the last 12 months, you might even be looking over the last 36 months, are you saying this makes a lot of sense, folks, or are you saying, do you know what, wait because i think these companies will be more challenged six months from now or i think the price will be due the moon and you have to act now. >> it's difficult to predict the future companies are looking at the opportunity both ways and they need to be prepared to do transactions that are sustainable over the long run. when you look backwards the s&p is within 10% of its valuation pre covid that might give you reason for cause when you look out to what's expectation in recovery in economies around the world in 2021 and beyond i think to think long term in this m&a

environment. >> tyler, we appreciate you joining us this morning, i hope to talk to you again the m&a market is a fascinating one whether it is a forward or backward indicator of the market the market is up, looks like it's going to open up at least over 1% this morning want to thank everybody for joining us i will be wearing my ring, will get you the data for tomorrow, join us moment "squawk on the street" begins right now. ♪ >> good tuesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber live from separate locations peter nafr row clarifies his comments about the china trade deal, the president tweets it is fully intact oil holding 41, the highest since march, but, jim, pretty much the conversation at least in the early part of