it is a crazy, crazy world and a crazy notion in this place we love everything we love black cars, black remote controls, black tv's, black phones, black glasses, black shoes, gowns we like plant tinted windowed, you even love black music and black food is good but for whatever reason when it comes to the lives our message has been perverted over and over and over again. when you, when we go out and night and we look out into space, 95% of the observable universe is dark matter and discharge energy it's black and you even love that, but for some reason when it comes to our lives, we love black everything.

i think you charge more for insurance when your car is black. so people are on that zoom plant form weeping they recognized it yes they have been drinking your drinks, buying your shoes, yes everything we get penalized for a color that you love. yes, june 19th for everyone, all of the overs, we need that we deserve it, it is the right thing to do. >> we certainly appreciate you taking time and your strong wordest and powerful words it is something we're going to follow closely to your point we nose those corporations well. >> we look forward to you potentially join u.s. us again to update us

>> please,please, i'm not a huge interview fan, but when it come thost this i'm right here, i'm at attention, i'm in service, and i would love every other company to match our pledge >> thank you pharrell williams joining us, carl over to you >> thank you, david. good morning, welcome to "squawk alley. interesting market set up this morning. had a lit of an early test as the nasdaq was down about half a percent. we have recovered back positive. there is some love with kohls, pvh, all up 4% or 5% >> yeah, it is hard for me to discern a story line here. micro soft and amazon are

fractionally lower of course it is still early. >> yes, it is. let's talk more about what lies ahead. creeping risks regarding covid we have not talked a lot about china today, the election lingers just about four months away what is the general play book in the next three to six months >> thanks for having me, guys. oakmark's play book is really unchanged for the next several months just like it is for the last 40 years. businesses that can have significant discounts and intrinsic value. that is the name of the game for us >> okay, so tactically what does that mean for terms of what you're looking to buy or not buy

in the near term >> if you look at the market today it looks like the normal end of the range if you look deeper there is something really interesting going on value stocks have led the indices for some time now and it really created a by fur cased market we were in ranges way outside of the bounds very reminiscent of the late 1990s when you had expensive stocks and cheap stocks and that creates great opportunities for a value investor like that so, we're seeing right now and we have seen a real dislocation between health, the real

economy, and over the weekend, the conversation that i saw and was having was about the potential for, i guess, an intensifying of the first wave of the virus and what the impact will be on local communities, does any of that matter to the market is the assumption that it will all be fine and as long as we have a big national shut down the details on the health and the real economy don't so much matter >> it depends really on what stock you're looking at. a look at something that has stocks in the low 90s. it will be less here

e elective procedures. but if you look out over a long period of time the company has grown it's top line roughly 5% or more. bottom line faster than that so it is a good management team that owns over a quarter of the stock, and if you look out a couple of years, it doesn't look like the market is discounting normality. you know they should be earning $12 or $13 a share in 2022 or 2023 and it usually trades around 15 times earnings it is probably worst something in the high teens. you do the math on that and that is more than double the current share price. there are pockets of the market that don't look like the discounts normality. >> but those are the anomalies, right? you look at airlines and travel and things like that. but overall the markets have held up pretty well and we're up

so far today on the dow and the s&p. almost 1% on the s&p at a time when people are concerned about whether or not these spikes are being contained. what i'm wondering is from a overall market perspective is all of that still being just put aside. >> it's really hard to say other than the market is in a normal range of markets, but it is important to do the home work on names, and it is really a tale of two cities in the market today. there is a nice opportunity despite the market having being

uncovered very significantly, but a lot of companies have been left behind in that rally. >> finally we mentioned the top. what is the likelihood of any change in administration translating into policy change >> you know people pay us for our opinions on stocks, not our opinions on politics we have owned stocks through many different regimes you know we're going to own them in the future through different regimes. so we're more focused on what is the business value, and act accordingly for our clients. >> tony, thank you for that. talk to you soon >> thank you, meanwhile the business round table is looking at the economic round up survey.

>> that is right the new numbers just in to cnbc. one number really stands out here in this latest quarterly s survey this is 27%. most thought their businesses would recover, but 27% don't expect to see the recovery until after 2021 so many are seeing a long enentreneneand entrenched program what they saw for their own companies, ceo sales expectations about 45% expected an increase in sales 43% expected a decrease in sales, and look at the decision making their taking away from

that expectations. capital spending, 18% said they would increase 43% said they would see a decrease employment is a similar picture there. all of that adds up to the expectations going forward the growth estimate is negative 3.8% on gdp and that is down from plus 2% in the first quarter. they are seeing a sharm traction here over a quarter of ceo's see it going in here. looks like they're just about as looming as other people are, john >> yeah, those are important

numbers, thank you for brings us those. up next, star bubucks is the las company to pull their ads from facebook it is not just facebook. so is this a boycott or a maetg ient cut in rkin spend? ♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

welcome back, the list of companies pulling their adds is growing. so what does it mean julia breaks it down >> well, good morning to you, john facebook shares are trading about 1.5% lower today this is as the amount of ad revenue grows. it was facebook's sixth bigger advertiser last year it joins honda, coca-cola, verizon, some of the brands are committed to a one-month pause some of them including star bucks and coca-cola are pausing spending globally while proctor and gamble says they're reviewing spending on all platforms. now there are 150 companies participating in the stop hate

for profit campaign organized by the naacp. they're calling on facebook to crack down on racism and hate speech the growing number o participating indicates that mark zuckerberg's promise didn't go far enough. they say they have facebook's planned product placements don't seem good enough bank of america saying it could slow the rate of digital add recovery right now advertisers are deciding whether or not they they should boycott cloglobely.

and as brands are looking to cut costs overall, it will be interesting to see if they find they don't need to spend as much on facebook as they were planning >> that is one of the things that i'm wondering for sure if is a good first topic to discuss with our next guest. kara switsher, happy monday >> there is no unified message, carol. no time period, no specific brand. a lot of them seem to be stepping back from facebook and twitter. and snap, which is entirely different from both of those so i mean is this just a convenient excuse to cut a tough market >> i think they would just cut it if they felt like cutting it. i think it is a little bit of

virtue igsignaling. i think they are sending a message that they have to clean themselves up. this is not good for these brands what is interesting is that, you know in an effort to maybe hurt facebook, they're really going to hurt twitter more facebook can sustain this, so can google this is just a drop in the bucket to them a lot of these are symbolic. i don't mind symbolism here. i think is says that advertisers are fed up with it and consumers are the ones that have to really start to get fed up for a shift in the wallet and the usage. and again the stock is up like crazy and it is actually useful.

one advertiser said to me, literally, i hate them but i'm going to keep advertising with them >> that is interesting, if it is symbolism, it seems like it is bad symbolism because they're not being specific about the change they want to see. usually when companies take a stand on something they're very specific we would like to see x, y, and z. they are not all doing that. i don't understand why their specifying social. and not you tube they're all over the place, kara >> i agrew with you. i think some of them are joining. they're not part of this

particular boycott, like adl and others so i think they want to signal they have a problem, and maybe they're talking to facebook behind the scenes. so there are some discussions that we're not privy to. it is clear that facebook has been embracing letting the trump administration off of the hook "the washington post" spoke about it today so i think they're signaling that facebook needs to back off, and i think they're worried about a change in the administration, that facebook is not going to look the best in that example so they may be saying that we like this platform, we like

using it, some being so incredibly irresponsible and i think that is more of the communication. >> the lead in that piece, kara, said that after one of his tweet s he called zuckerberg directly. is he trying to hedge a biden win? >> i think he has been letting joel caplin decide on product issues many people find that pretty reprehensible to let policy people dictate products. these decisions told be made away from policy in many ways. i they're, you know, like i said in the previous column, facebook plays the long game. but a lot of the legislation is coming down the administration

has it coming down the pipe, if either of those people -- you will see real change happening, and real regulation and action that it has a lot of muscle behind it. we'll see. >> stay put for a moment meanwhile today is the 10 year anniversary of tesla's public debut going from $17 a share to over 1,000 we have been there the entire way and looked at tesla's wild rise >> a great outcome from the smarter investors in the world

>> welcome, everyone, to the model 3 unveil we have an amazing product to show you tonight >> what goes into making the model 3? >> belle in production hell. welcome. welcome. >> it blows my mind, i think it will blow yours. >> he is thinking about taking tesla private. $420 is the price he would do it at >> it is legal, right? >> welcome to the product unveil are you sure >> oh my god

today surpassed 1,000 per share for the first time >> not just phil, a lot of elon musk. tesla, this stock, this year even though the rest of the world may be going to hell, they seem to be holding up just fine. what do we frak that >> people like them some elon. this stock just keeps going up it is a hope stock it was like amazon was in the early days she in a lot of the places that people are going he is way ahead of things and i think people are relying on him. some of the stuff, the 420, his

pedophile tweets, i think it is all part and parcel to people believing is in this guy and the things he is trying to attempt. so from an economic point of view i'm not a stock person, but it has been a good bet, and pete that bet against him have had their hand against him >> what it means to me is a counter intuitive bet and there is a lot of money to be made, but he, more than anyone else, tackled a different kind of probl problem. is that part of what this is >> he has to be doing things

that are hard. i have lots of tussles with him. i might be in one right now i'm not sure i have a lot of admiration for someone that takes on space and does it well the tunnel thing, i think it is fascinating. solar, it is all stuff that is anal analog, it is hard, i admire that when you're dealing with real problems in the world like climate change, dealing with issues, where the human race will be in the fuel. there is a lot of stuff where you just shake your head, and i think you just -- it is hard to resis a lot of this there are product that's are really

tremendous at the end of it. >> you mentioned space and now autonomy last week musk tweeted that besos is a copy cat. do you think he sees jeff on his tail >> they all don't like each other. i think it is just that kind of thing. i am waiting for besos to start a tunnel digging company it was just really funny and i'm sure it is both, you know they're both competing in space. they're competing in cars now. zuks is a really interesting company and a fascinating purchase i have ridden in that car. i rode in it for the pod cast. i'm not surprised he bought it

i think it was very interesting. and i think that was a very funny tweet on elon part and we'll see what happens between them it is not a bad thing to compete on, i will tell you that >> cara, thanks, good to see you. good to see your eyes. >> here are my glasses right here >> thank you >> bye we'll take a quick break here, we're seeing a boujs in some retail and mall exemployee su -- exposure names second biggest gainer behind cody, don't go anywhere. we're going through a really tough time right now, all around the world. and covid-19 is still impacting so many people.

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welcome back, let's get the european close >> we're up about 1% in the uk travel remains a big focus the european union is stoet is be in the final stages reports suggest that americans will be excluded starting july 1st. u.s. travel issues a statement saying this is unwelcome news and it will have major negative

news pressuring greece, croatia, and countries that generate 10% of more of gdp from travel. the drop in oil prices pushing some companies to diverse parts of their business. bp will sell their petrochemicals business to a privately owned company for $5 billion. some say it is a much needed cash injection back to you, john. thank you, let's get to sue for a news update. sue? >> good morning, john, good morning, everybody sheer what is happening at this hour the white house will brief members of congress after a russian unit offered a bounty for killing troops in afghanistan. president trump says he was told sunday night that the intelligence was not considered credible israel's defense minister

says that benjamin netanyahu hees man for annexation will have to wait until after the pandempa determin determineic. and removing the con federal battle emblem from mississippi's state flag mississippi is the last state with a confederate insignia on their flag "squawk alley" will return in two minutes time

watching these markets this morning. we have a weigh in on what may be driving the action. >> yeah, i mean they're making the case that in the last few weeks they have pulled back internal weakness. most stocks were down. everything that happened last

week, as we creatak as it was, e selloffs, it happened within the range of the prior couple of weeks. so just on a technical basis it seems like you can still dhaul a con sal addition are we going to continue to follow the kind of path defined by that 2009 march bottom. it siyncs up okay right now it could be something desightive like that but other things are not really capitol rating with that view. you're not having a linear improvement in the economic numbers. i do think that you're sininsule a little bit because people are cautiously optimistic.

>> this morning you made the argument that maybe markets could be at 2800 >> i don't think it is necessarily really tipping in that direction right now i feel like that would be in the bounds of a routine pull back. but going down and staying down probably needs something more to go wrong i think if you look at junk bond it's is softened up a little bit. i'm not suggesting that everything is lined up, but i think it is fascinating that we go between the june 5th, june 8th attitude we seed to have this thing licked the curves are flattening. that was sort of short-term optimism interesting this morning that if

that florida headline that you were sharing, the one they you were sharing, if that gets traction in terms of letting this market get a breather to the upside today, it is fascinating. the market was fading, and to me in is exactly like the trade war stuff. the tests that it created did not giadefine the trend, but thy said how much do you want it, how much do you want it? the bulls or the bears, and i think that is really the role that the virus news -- that kind of virus news is taking right now. >> what about politics normally, you know, post the spring we're seeing an impact of that but can you make the argument that it is having a polling impact

>> it is not in a direct way that we can necessarily quantify right now the market has definitely flattened out in the last few weeks as there has been, you know, betting oedds an the polls showing a advantage for biden. to me it is not so clear what the immediate stakes are for the market to be pricing right now and i keep going back to the fact that the market has been preoccupied with massive issues on where we are in this economic cycle will we come back wickquickly or slowly these things are such big swing factors that i'm not sure that swe ax policy will figure out how to handicap all of these facts. >> well see how some of the coming data like jobs will

impact the debate. i'll talk to you in a little bit. i appreciate that. keeping us honest on levels here meanwhile, orlando florida has t the fastest growing covid numbers here talking about policy changes, good to see you. >> thank you for having me >> we were talking to a real estate owner in texas that said the announcement about bars on friday, which took effect virtually immediately was confusing, yet again, how are you adapting to these fast changes? >> we had to adapt as fast as we can. once the announcement came in we had to reschedule staffing hours. we had to just strictly focus on go-to orders we knew that we were not going to get the people inside the

building people are scared. we understand that so we're just continuing to do our beers to go at the home and food that's all question do and it's not fair. >> had you seen -- we have been watching open table metrics. were you seeing that begin to roll over? >> yeah, i did and it just dropped. we don't have any reservations at moment for dining and the folk that's do come in, once we tell them we can't serve beer or wine, they leave you said it is not fair, the situation that you're in with having to do carry out what would be fair in your mind? >> we're a brewery, we make our own beer in house. you know we just sell beer and wine and people come an eat. beers to go is great, but that's not the majority of our business so how does a small business

owner like myself survive in these times? it is very difficult >> what would be fair given your understanding of the health issues and concerns? what would you like to see the state and local authorities do as far as restrictions and communication? >> allowing us to reopen, right? and we understand that we have to follow the cdc goouidelines. allow us to have guest come in at 50% or have people even sit outside and serve them outside right now once that ban was in effect in florida, we're all hurting and we're all hurting together there has to be a type of resolution to this how long will this go? is the government going to help us at the end in we don't know,

we don't have answers. >> a lot of the states that were experien experiencing covid spikes, they said we trust people to do what they have to do. now they are experiencing spikes people are even complaining when businesses are asked to do so. what do you think the solution is to that >> i don't know. we have to just continue to follow the cdc guidelines. wearing a mask does help we have signs at our building to wear a mask. you kaentt wear them when you drink and eat, but we're just leaning on the experts to figur it out >> for you guys ppe money did

come in, right >> yes >> what is the status of that? have you had to ado you mean late any debt or go into forbearance on rent. >> yeah, it is run out, it is past the eight week mark the question is how long can you go now we are still in conversations about reducing our rent. i'm still waiting to hear back from them on that. >> what do you do with technology strategy going forward? i imagine the imagine the hamt of takeout a -- amount of takeout, the grub hub, i imagine it has all gone up as you look hopefully toward a time after this, how will your technology platform strategy be different? >> so we have to continue to push on social media, but we cannot technically sell beer out

the door in a delivery method. question only do that with food. there is laws in lace that doesn't allow us us to do that so or sales dip if someone wants it but they don't want to drive here, there goes that sale we can only do food because of the laws in florida. those laws need to change. it will help small businesses like ourselves >> finally, how long can you last how long can you survive and what would you do after this if you had to shut your doors for good >> can we survive, right as long as we continue to get support from the communities, they keep buying beer and food, if we can just break even, that

will help. sit back for a couple months we could figure out our next steps, but i don't want to shut down. i want to keep going i want to go for years from now and make this into something big in this touwn we're the only brewery and we want to stay here. but the million dollar question is how long can you go no one knows the answer to that. >> do you any words for desantis or policy makers in florida who some argue took this too lightly earlier in the year? >> i think they did a great job at the end of the day, but they have to look at the small businesses, how they're hurting so bad with breweries in the state of florida, there is a three-tier system we have to go through a distributer to sell our beer and that distributor to go next

door that is just one part of this business, right? this this industry there is so many that need to help small business get out of this we're the driving factor in this country. if small businesses don't survive we all have to shut down life blood of the economy is small business we hope you will come back, thank you. >> thank you so much still to come, one of the few in the music industry thayot u know by name, pharrell. don't go away.

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decision gilead donated their existing supply up until now. now they announce there will be two different prices for the drug in developed countries. one for governments of developed countries including the united states, $390 per vile, or for the average court of treatment, $2340. that is 30% more they say that is because of the way the u.s. system works in terms of having two track prices they say their calculations are based on the savings of hospitals by $12,000 they're giving a major discount to that. drug pricing watchdog ices puts $2500 to $5000 as the fair

price. here is what they said about how they came to the price >> this medicine adds significant value and we decided to price this in this very extraordinary time in priced ite at the price that allows for access across the developed world. what we have done is we have one price for all governments across the development world based upon the lowest purchasing power of the developed world countries. >> wall street trying to parse through the implications of this the pricings remarkably low given the direct medical value not to mention the societal value. he says this will change all future expectations for the treatment of this disease and may influence pricing in other diseases he's saying this will be a benchmark for future drugs and even vaccines for covid-19

back over to you >> i wanted to get your take on what fauci said last night he was asked about vaccine effectiveness. he said he would settle for 70%. the question was if only 70% of americans say they will take the vaccine at all, does that get you to herd immunity he seemed doubtful about that. >> he told us the same thing on friday he sad a good vaccine would have efficacy of 70 to 80% of preventing disease it's true there's a lot of people who are he has tants sit vaccine in general or because they are concerned this process is being rushed. fauci said a, the advocacy needs to increase and the communications need to improve around vaccines being helpful and he emphasized that safety will not be sacrificed he noted that having a vaccine won't be a binary event and we

will have to be implementing public health controls in addition to getting vaccinated >> yeah, we're hear a lot more on the advocacy front. thanks we'll see you in a little bit. s&p 3040 don't go away. you can't predict the future. but a resilient business can be ready for it. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government going digital to keep critical services running. you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible.

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i've spoken to the ceos and they've all said yes they've all pledged. they understand. if you want to know which way the wind is blowing because we are a nation, we're a country. we operate like a company. that's why every one tunes in to cnbc because they want to understand the metrics and the mechanics of what's actually happening out there in the american market. the way for us to understand is follow the money these corporations are doing it because they realize that they have a consumer base that not only votes but they have a consumer base that votes by what

they spend these corporations understand that >> that's pharrell with us earlier in the morning talking about his campaign to get companies and ceos to make juneteenth a paid day off. twitter making election day in my dr many countries a day off for their employees. almost ties into the conversation with facebook earlier on companies getting more responsible socially instead of financially. >> well, i guess we'll see if it's more responsible socially not to take anything away from the push for a holiday that's one thing but i want to know more from companies, what their philosophy is behind these pushes we tried affirmative action, that was in a different era. that didn't yields the results, i guess, that companies wanted what are they going to do differently this time? have they put thought behind it so they can articulate not only

the social reasons but the business reasons behind it i think there's a lot of people who have those questions maybe now haven't isn't a comfo tyke to have the questions i'd like to see more thaugful discourse behind the whys of the moves they are making. >> motivation is key especially in this environment and maybe that will be a question for their earnings calls something we might not have imagined a couple of years ago market wise, today, pretty interesting picture. the nasdaq is trying to avoid its first two-day drop, con sec ti -- con sesecutive drops it's the biggest day for the dow going back to june 16th as we trying to stay positive for the month and aware of everything that's coming. thursday, we'll get claims the cbo forecast a and the jobss

numbers. >> apple, microsoft, amazon, alphabet and facebook, just one of those is in the red amazon downabout a half a percent. the rest are up. we'll see how the day shapes up from here. >> we'll look from some capital announcemen announcements. let's get back to headquarters with the judge and the half. welcome everybody to the halftime report. our to story, the second half set up after a volatile six months in the market is your money primed for new highs. we debate that today we are green across the board