it is 5:00 at cnbc here is your top "five@5." rolls on with new all-time highs. we have a stat that will blow your mind. will stocks get fuel from the june jobs number well break down what america can expect states taking new action over the coronavirus with a continued surge in some parts of the country as the president suggests the outbreak could simply just disappear.

>> and congress takes new action around hong kong and protests there. >> summer sold out a search in demand for outdoor enjoyment is leaving you in a search it is thursday, july 2, 2020 here on cnbc good morning welcome from wherever in the world you may be atching thank you for joining us here on "worldwide exchange. let's get to how your markets are setting up the day it could be. we say that. remember the markets are closed tomorrow ahead of the 4th of july holiday you get a 3rd of july holiday.

there could be a lot of action packed earlier in the day before volume tapers off. look at stock futures now up 187 points the nasdaq hitting new highs on wednesday. eight stocks hitting multi-year or all-time highs including names you know microsoft, netflix, ebay, paypal, video game companies and others let's look at the oil market there. that duelling battle between inventories and the ward of words. inventories continue to draw down but saudi arabia has warned some opec members to start cutting their output, get in line or risk another price war that sent oil negative something big to watch that oil is fractionally higher let's get around the world to

karen tso in london. good morning >> brian, good morning i thought these markets might be a bit more cautious this morning ahead of the numbers state side. responding to news of another vaccine showing promise from an early trial. markets have popped around the german stock market where we are seeing a lot of encouraging trade. up 1% at one stage up in the french market. we started out the second half a lot of appetite for spanish and italian stocks also showing a decent bounce in spain with the ibex up strongly. we talk about more vaccine hopes. the zurich stock market where

stocks have been located and stocks are on the flat line today. taking you to ab foods you've got the little brown bag. they've reopened 153 stores in the uk stock prices have moved up 4.6%. wirecard, that stock falling again down 27% we've heard news of a raid on the headquarters and more from members and the ceo. to the ongoing surge of new coronavirus cases in the united states the country has seen the second highest increase amid the outbreak and the president's visit to one hot spot. we have that and other top

stories. >> vice president pence's visit to arizona comes as that state reports new record cases and deaths arizona officials reporting 5,000 new cases. the vice president praising the work of medical workers and support for the governor pence will talk to cnbc exclusively at 10:00 a.m. eastern. president trump restating his believe that covid-19 will, quote, disappear some day. making tha those remarks discussing the economy and he says he would have no problem wearing a face covering in public and fed's bullard warning the outbreak could lead to a financial crisis saying it is possible the u.s. could take a, quote, turn for the worse but added that is not his base case.

he said it is important to keep lending facilities in place now although liquidity in the markets has improved dramatically back to the markets with tech stocks continuing to hit new highs. we just talked about them. microsoft, netflix's and others. many of you may have made money in the work from home trade. you may be thinking that has flown the coup the new ticker wfh with trillio, cloud strike and zoom. david, good to chat with you you do a great job putting together these unique etfs what makes you convinced that

whf trade is not over? >> we need to take a step back and think about this pandemic causing the change one of those is the greater acceptance society has towards remote work and the ability society has with the ability to work from home the stock we believe given the best exposure to continue and ra pel and not just be a fad. >> the reopening process has been choppy and will continue to be choppy. i think companies and employees are learning if they can find a way to be productive whether that be partially at home or full time in the office and sometimes at home. you need the pillars to power that going forward

>> i am going to channel the inner genius of one of my colleagues in his famous two parters. what are the biggest holdings in that etf and are they overvalued given that so many people have been piling into same trade for a long time? >> that's a reasonable question. investors should understand the value of this particular etf we look at the top-down holdings you'd expect zoom to be in there. up 280% on the year. the poster child for work from home investors flocked there early because many were using it not just for work but to communicate with family during the worst of the pandemic there are names like trillio

they provide a network for text messaging. new york city's contact tracing is run by twillio. cyber security threats will be on the rise. so the cyber names are required to be in a basket representative of the work-from-home theme. here is what is interesting, if i compare to nasdaq. this particular etf is at 2.8. closer to the broader market if you want to make the argument stocks are overcrowded as a group, which could be annual, we believe there is momentum for stocks to go higher. these stocks are not overvalued.

and are less than the multiple of the nasdaq. >> i want to steal thunder from a coming guest with an amazing stat, does that mean to you, the big tech stocks of pretty much everything are wildly overvalued? >> again, there is an argument that tech is overvalued. the work i've done to compare technology price to sale, price to earning relative to its history. definitely 95th percentage by no means cheap. what we think is interesting is investors maybe can start thinking about it again. not just piling into the trade we know tech has had an acceptable run some of our household names you might know many of them are not.

56% of cfos said for jobs allow it and activity barring child care issues could increase if they have the flexibility if they work where they want there is two levels here the top line difficult health care crisis and if we step back and ask what do employees want they want the flexibility. >> speaking of work from home, i put up a pull. do you want to go back to the office right now, nearly 70% responding said no. go there and vote. best to you and yours.

happy fourth when we come back, we'll give you that amazing stat on big tech and why even the continued rise of covid cases may have a modest impact on the market and breaking down the steps he says washington needs to take to shore up the economy and a leader from a major movie chain and the challenges they she facing as hollywood keeps puing their big releases back. we are back after this you say that customers make their own rules.

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biotech under a bit of pressure parents, i'm sorry, mcdonalds play land is still off limits. let's get more from frank. >> starting with pharmaceuticals. shares of inovio are down again. following a downgrade on tuesday. announcing limited clinical data on the potential covid-19 vaccine but said the virus opportunity is already priced into that stock which is up 500%

this year. mcdonalds is reporting a pause in plans to resume dine-in service in the u.s reported by the company's u.s. president. restaurants that started offering dine-in service in may and more than 2,000 locations. they can continue to do so if state and local locations allow it jetblue and other airlines under a lot of pressure. the pandemic continues to hurt travel demand. back to you. >> frank, quick question, have you been to a restaurant yet since they reopened? >> i absolutely have going to a mexican restaurant where i'm able to sit outside. i'm not sure if i'm ready to sit inside yet if it is outside and open air, i

do feel safe >> it is magical, right? you give people money, they bring you food and drinks. >> and sometimes guacamole it's amazing on deck, several major tech ceos agree to take the hot seat. the big names testifying before congress amid its antitrust probe. >> announcer: today's big number, 7,197. that's how many children under the age of 18 in florida have tested positive for covid-19 since march. tseofho 155 children were hospitalized during their illness.

welcome back the number of confirmed covid cases continues to climb with the numbers getting larger, even the same percentage growth could send covid cases to 100,000 per day. your next guest says this could have a modest impact as stock markets become less reactive to some of those bigger and bigger numbers. ahead of that to cross asset

strategy a lot to get to. let's get to this health story neither of us are doctors. we are not going to give our opinion to the virus and the disease itself i think we can agree the beginning of march, it was, don't look at somebody or you'll get it it is investors and the market have inunderstanded themselves >> i agree, where we are now has changed since march and clearly a lot of the mitigation efforts the government has had to do we are seeing the growth rate of new cases has already started to slow in the last few days. that is prior to government

impositions going into place we think the back drop is supportive and this is not going to stay in the way of the recovery part of that goes to when i chat with people. remember what we were told at the beginning, we were told the only way out of this was herd immunity with johns hopkins saying 70% of the country needs to get this and move on. >> i think that's right. there is a bridge between where we are now and getting to a vaccine and what pfizer had said they expect in september, they are going to have data for their

vaccine. they expect that's right we are not too far away between now and october, you do have a slow down. the economy may continue to grow out of its bottom from march with we can get to that level back you know in october, november, december where we start to see vaccine doses >> we know that big tech has run the show for a long time you've got a stat that blue my mind not only the faang m, facebook, apple, amazon, netflix and

alphabet and microsoft six stocks are now longer than three entire sectors of the stock market is that scarey dangerous? >> it is a pretty amazing stat i don't think it is dangerous combined, all of those are res than six stocks. we do think there will be a rotation into cyclical stocks you have personal income growing you have housing that is back to pre-covid-19 levels. you have a lot of data out there that is just cyclical.

>> i got to jump in. we are running out of time we had a guest that said some of the nasdaq big tech are four times priced to sell or more than we have seen in decades let me ask you this question, by the overall market on the s&p 500 index, could those five or six stocks go down? >> the answer is yes we think they can muddle the six stocks and can be used to force the funds around while the other 75% takes the lead over the next five or six months >> really interesting stuff there. kind of a unique time. we'll watch it close got a big old horse pulling the

market cart. hope that keeps going. best to you and happy fourth on deck, joe biden has got a big lead in many polls we have learned that polls, they can be really wrong. what does former cbo director think? he'll join us and new woes for wirecard investors as the roenn of europe case continues we are back after this 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses.

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will the faang stocks continue to strike futures are higher an early exit for trading today. congress fighting china over the new anti-free speech laws. police in hong kong make hundreds of arrests on its first day. so long summer plans millions of us stuck at home and everything we want to do sold out. on ha happy note, it is thursday, july 2nd you are watching "worldwide exchange" on cnbc. welcome back and good morning or good evening getting

to the markets and how they are setting up their day today could be a wild day. it could be. here is why. the markets are closed tomorrow. happy july 3 holiday ahead of the fourth on saturday you've got the job numbers this morning. there could be a lot of action earlier in the day it could taper off that tends to be the case ahead of the long holiday weekend. we are seeing a lot of green, futures are indicating this rally will roll on nasdaq, what's new hitting new highs. eight stocks hitting multi-year or all-time highs including microsoft, netflix, ebay, paypal, act vision, blizzard

amgen and others as well to a more serious note that is the situation in hong kong the house of representatives here unanimous my passing a sanctions bill to penalize china for imposing what they call a national security law on hong kong as demonstrators take to the streets and more arrests are made eunice yoon joins us from beijing. >> thank you, brian. beijing was on the offense today fighting nearly universal condemnation from the world because of this law. attacking the new house bill saying china resolutely opposes the new sanctions. china's foreign ministry warned the uk which is now offering at least 3 million hong kong people a path to citizenship saying that move would merit core

responding measures saying they have no right to take such action they told australia today that they should stop interfering in beijing's internal affairs all of this because beijing imposed the new national security law yesterday. the state papers today have been arguing all day that it is necessary for the stability and prosperity for the city and have been pointing to and many have been pointing to the rally we saw in the hong kong stock market saying that this was a gachlk how prosperous and relieved investors are there has been plenty of suspicious as well that there are mainland funds doing the buy in >> you look at the markets there and it is pretty much impossible for an american to buy stock in the local market very, very difficult to short.

that aside, what is sort of the headlines in the beijing newspaper versus the hong kong newspaper? what are the two sides saying about their perspective. all focused on how great the new security law would be. the long-term prosperity and the stability of the city and that this was a loophole that this law was necessary to fill in a loophole in the way that hong kong was governed. from hong kong side, they have a freer president as of today. there has been a lot of concern about civil liberties there it

applies to anyone, anywhere even if you are not from hong kong and even if you are not in hong kong at the time >> i was unaware of that provision. that is a big provision. there is a lot of wiggle room there. we have to watch and hopefully i'll get back over there appreciate it, eunice. take care. >> to washington where lawmakers have approved a bill extending the deadline to apply for a forgivable small business loan president trump says he supports another round of direct payments to americans as the white house and congress mull a new stimulus package to help shore up the economy. the next guest says it is time to move away of throwing money

at the strategy of hiding. it is great to have you on this morning, doug. what do you mean we need to move away from sort of hiding from it. how would you best handle any new round of stimulus? >> i think we did something very sensible with the c.a.r.e.s. act and helping am employees ride out the rough few months you said the story, over 70% of correspondents didn't want to go back to the office the work place has to feel safe. customers have to want to come we need to focus on the things that will produce that

if it is ppe, getting everyone masks, monitoring the work place for social distancing, that will be key getting people to the work place safely >> reading some of the stuff you posted one thing i hadn't thought about that you brought up, which is why we bring you on television, a lot of companies will not have any payroll or income tax this year your idea would be to reduce their need to do that so they can maintain that much-needed short-term cash flow >> yes my thinking is after the experience of the terror attacks in 2001. after that, we saw the economy struggle we failed to appreciate that we were trying to have an economy

in the face of a terror threat we had to do things like we had never done before, set up tsa, inspect every piece of cargo coming into the u.s. we spent a lot of money on security we are in the same position now, we have a threat, the virus. let's help companies make an adjustment that's a costly thing for them if we can take other costs off the books by reducing taxes, that would be helpful. my idea is to reduce the tax, payroll tax. they probably won't have income tax liable let's help so they can provide equipment so people can operate and work safely in that environment. >> on the political side, there is a book. i don't know the author. it was really good called "everybody lies." how people tell the truth to google but they'll lie -- you'll

get an anonymous poll or survey at home. nobody believes anyone is anonymous. right now biden is up in the polls. how close do you think this race is right now >> this will be decided like previously by a couple of small swing key voters what can you do to swing those key voters in ohio, michigan places where president trump was successful in. those are still moveable they are not locked in it is a long way to november this race appears tighter. >> i'm actually driving to wisconsin after the show one of the reasons in 16 i was

out there saying i think trump may have a chance. a lot of my friends there in wisconsin were saying they were switching over because they were labor democrats. the steel worker that likes the packers, they switched it was really about 19 counties, from what i can remember, that actually turned the election do you think those voters will either switch back or maybe not vote >> i think the key for the president is that his handling of the pandemic and his response has taken some of the swing voters and put them in the democratic camp. he has to be successful arguing that he's there for jobs in the economy and there to make the country safe against china and other key threats.

to point out that his opponent joe biden will not be that he has to make it a choice between trump and biden. the briden strategy is simple, let's have a referendum on the president. you are seeing the strategies play out >> biden has done, he's got to do a good job of speaking to that labor democrat in pennsylvania, michigan, and wisconsin. i've got a long drive after the show i'll let you know how it goes. >> phone in as you go. we'll take a poll. >> all right, great to have you on "worldwide exchange." great stuff. smart stuff as always. coming up, hollywood continues to push back big summer box office season amid continued concern. the chief operating officer of bow tie cinemas and the

challenges they face other headlines, ceo s from amazon, apple, and others to testify. soft bank looking to end its partnership with wirecard. seeking to scrap five-year deal with the investment arm formed in april last year wirecard now being called the enron of europe. and novartis has agreed to pay $670 million for a civil lawsuit. accused of illegally providing doctors with cash and other perks to provide certain drugs dow tufures are up 175 we are back after this we're going through a really tough time right now,

all around the world. and covid-19 is still impacting so many people. if you've survived it, then you're the heroes we need.

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you want to come over one day, we can play because everybody is just trying to party in their backyard during this 4th of july weekend leading to a surge in demand if you don't want to socially distance yourself at the pool, you can buy your own inflatable one and stick your family inside the minidip company saw the best day ever just past friday when sales were up 3,200% leading to a shortage at some major retailers. >> we've had people reaching out looking for what the restocks will be at target. we are flying off the shelves. at target, there was a sign that said, limit one pool per customer >> the bike industry said sales in may were up 81%

the second con security month that sales have topped a million dollars. those figures are unprecedented. after your ride, you may want to relax, leading to a run on hammocks based out of north carolina. the company said its back orders in may were up 400% compared to last year. now looking at a 16-week lag time on hammocks if you are trying to order a hammock now, you are probably not going to get it until after summer is over back over to you >> listen, i look forward to being invited to a muiy family tournament >> it is at least six feet across the net, right? >> that's right. we can do it interesting stuff there.

could be a really interesting summer with families staying close to home. best to you and yours. movies are generally part of our summer plan. in the last 24 hours, california governor has ordered los angeles and 18 other counties to close again for the next three weeks amc and regal announcing reopenings delayed to the end of next month and some saying holding out past july 10 could devistate an already devastated industry. joe, thanks for joining us i'd say good morning but i know how tough this has been for your business is there any sign of your guys coming out of this at all? are you going to be able to survive? >> we are hoping so. we were counting on movies being

released in july with the delayed openings in california and new york, companies have pushed their openings further into july we have one open in richmond and in connecticut but with old product, it didn't really work out for us >> what is your status across the regions. >> and are there movies in theaters >> the first big movie is on july 31st of "unhinged" starring russell crowe. that's one movie you have multiple screened theaters you can only show it on so many screens. with streaming, netflix and

amazon prime, every old movie you would want to see is available at your finger tips. showing it on a big screen is magical for some but not everybody. >> what's next then? what needs to happen if you could speak to the senator congress, the president, what would you say to them? >> it is really a state by state decision i'm involved with national theater owners heavily we are lobbying in new york, california, maryland and other states where theaters have not yet been allowed to reopen once we get commitments on reopening dates in california and new york, theaters will keep openings on schedule hopefully late july to august. hopefully august 12 for the movie "tenant. we are hoping be back up to

speed by them. >> a tough time for you and your team there looking forward to getting back to the theaters soon >> thank you look at stock futures up 170. looking strong again ahead of the june jobs number is big tech about ready to get blown out or will stocks it in to blow up in a good way we are back after this

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welcome back look at stock futures. investors are awaiting the release of june jobs numbers estimates run on economists ahead of 2 trillion jobs added to 7.2 million jobs added. the consensus is spare around

3.3 million. does it matter if it beats, quote, the consensus given that there is effectively a 5 million hole between the high and low numbers? >> i'm not looking at it at this point. the numbers have been so far apart and so tough to deal with. look at the revision in may. i don't know how you go from minus 2.7 to plus 3. it is mind boggling at this point. i think we'll have to look elsewhere for guidance at this point. >> barclays are at the low there are probably those with more that middle number, the median or average, we know those numbers can vary widely.

what are you looking for in these numbers. is there anything in it other than the simple number of americans that will go back to work >> the only thing i care about is that it is increment al we always knew it would be stair steps higher it would be lumpy and a lot of mistakes along the way the message i'm etting, as thi recovery unfolds, you will start to move down the valuation curve and down other sectors like industrials and evenfinancials has the fed effectively destroyed the model that worked

for over 40 years? >> they murdered it even noting where a lot of people are hiding out. investors have piled in to stocks that's why i'm suggesting we have to move down the value curve. look at other air kwaus of the market industrials are essential. >> six stocks, not only are they 24% of the s&p 500

those six are bigger than three entire s&p sectors industrials, retail and energy is that scarey or good because those companies look very strong >> they are strong it is a conversation we could have had five or six years ago it has been increasing over the years. large cap growth has dominated and probably will for some time. outside of that, the defense names at cyber offense every quarter is a hot spot and the fact that the policy and economic threat is a good place to be. >> we have toe leave it there. that's got to be getting more attention. that law applies to hong kongers

outside of hong kong sort of maybe going after the cantonees segment. best to you and yours. folks, thank you for watching "worldwide exchange. i'm off for a week squawk and the gang ckpiing it up have a great 3rd, 4th and 5th, everybody. now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com.

good morning welcome to jobs thursday we'll get you ready for june payrolls and reports which could move the markets which are up higher a pretty good week for the dow

except for the slight move lower. roll backs continue. california, michigan, pennsylvania, parts of florida adding back restrictions companies like mcdonalds and apple are halting or reversing their plans. four tech ceos have agreed to testify the latest on the crack down of big tech companies thursday, july 2, 2020 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick with joe kernen and andrew ross sorkin we start with the markets.