it is 5:00 a.m. at cnbc and here are your top stories. stocks kick off the week on a strong note and the nasdaq continues to hit another record high and big technology is taking on the new security law in hong kong we are live overseas with the latest as companies push back against china's crack towdown te and facebook is set to sit down with civil rights groups behind the ad boycott of the social media company to address their complaints it is tuesday, july 7th, and you are watching "worldwide

exchange" right here on cnbc good morning, i'm dominic chu. your stock of the morning, a name you probably all know and even use, amazon.com climbing to a new record high of above $3,000 per share you can see here in the early trade, $3046 is the last trade for amazon we're off about one third of 1% in the pre-market. that is just one stock that you need to watch today. but in a bit we'll go over more. but we start with how you and your money and the global markets are setting their day up stock futures indicating with a should be a lower open at in stage right now. if the futures moves holds, the dow jones would be down about 247 and the nasdaq down about 40 but remember, we had strong

gains in yesterday's session and that saw the dow jump over 450 points and the s&p post its fifth straight positive session. and the nasdaq's run continues jumping more than 2% to hit another all-time high this has been a strong trade throughout the course of the year especially since the covid-19 market lows that we saw back in the third week of march. taking a look at the bond market as well, we're seeing yields pull back a little year. ten year bench mark note yields about 67 basis points. and two year note yields 16 basis points and by the way, the long bond the 30 year just about 1.42% at this stage right now let's go worldwide karen has a look at the overseas action and it was very much a mixed picture in asia and red in europe right now >> good morning. i'm swamped in red as the

markets reverse here and you can see just how negative we are as we are tracking the lows of the session. we have fairly significant falls for the uk, france and germany and what we've had today, very has meant a significant change for 2020 we're now expecting a c ing con of 8.7%. and next year, it will be smaller than anticipated at 6.3% and now just 6.1%. and so disappointing as investors look at the reopening of the economies and how it is impacted with fresh close suures 1.3% coming off germany. italian market down about a third of a percent and keep in mind we were expecting significant contractions in some of these

markets. france, italitaly, spain shouldl about 10%. and on bmw, initial signs of recovery particularly out of the chinese market that is encouraging. back to you. >> thank you very much and let's get a look at some of the other top stories. the trump administration has disclosed the recipients which got loans under the paycheck protection program the ppp. the disclosure comes amid demands from congressional democrats for more transparency around that program. notable recipients include transportation secretary elaine chow's family business, a trucking company co-founded by agricultural secretary sonny perd perdue and also ruby tuesday, pf chang's and tgi fridays. and you can see the full list of recipients at cnbc.com and meanwhile dr. fauci says that the u.s. is still knee deep

in the first wave of the coronavirus. speaking yesterday, fauci was blunt on the current state of the outbreak in this country calling it not good. he added that the u.s. will know by the end of the year or beginning of 2021 whether a vaccine is safe and effective. and amid that spike in coronavirus cases, atlanta fed president rafaels abo bostic sas that the u.s. economy is in danger of stalling he says the data has shown a leveling off of economic activity citing business openings and mobility as well. turning back to the markets, stock futures are lower this morning following yesterday's strong start to the new trading week and while the markets rally continues to roll despite various headwinds, your next guest says that the s&p 500 faces the potential to retest its late march lows. that is not a good sign. joining me now is rob morgan,

rob, i mean it is jarring. it was such a bad time march 23rd at the lows how is it possible that we test it again >> well, dom, thanks for having me on this morning yes, in my notes to you i did mention that we possibly could retest the march 23rd low of 2237 but the farther away that we get from that, and we're about three or four months away from that, it becomes less likely and on balance, i am very optimistic and positive on stocks right now but i think that it is good to remind clients that retesting lows in a market rally is always a possibility. >> let's say it is a possibility. what exactly would have to stack up, what kinds of events would have to happen because there has to be a lot of

them for us to really go back that low to the depths of that kind of markets that we saw during the height of a pandemic. i mean, it seems as that they would have to get a massive resurgence and huge economic shutdown, both things by the way that, yes, are a possibility but most experts believe will not happen >> well, yeah, and i would tend to agree with you. we are in -- we're in a very strong economic recovery right now even though the atlanta fed president said we're seeing some leveling out the administration has vowed that we won't have a second shutdown so i would say to abc yonswer yr question, what factors need to stack up, the administration would need to go back against their vow not for a second economic shutdown. and also the fed has vowed that they will print money until they achieve their dual mandate you know, full employment, 2% in-flaigs. we'

inflation. we're a long way from that so perhaps there would be a catastrophic event that would cause the fed to renege on that. i can't information pr sforesee be >> i feel as though we're all keenly aware in the world of financial news and surely on wall street as well all of the criticisms of the fed and its policies that somehow down the line we'll have some massive amount of financial kind of chaos because of what is going on right now and that may very well be a possibility. but we're nowhere near the inflation levels that the fed would get scared about we are certainly not near full employment right now account fed just keep doing what it is doing with that kind of leash and latitude because we don't have any threats of having any of those real bounds tested anytime soon. >> yeah, absolutely. certainly for the short term and the intermediate term, you know.

for the longer term, the fed balance sheet keeps expanding. it will probably get up to 8, 9, $10 trillion that is certainly a possibility. and that is a big balance sheet. and in the long term, that would have to -- they would have to start to unwind that but that is way down the road. the stock market investors typically their view isn't that far down the road. >> so let's come back into like the next 12 to 18 months because we're looking for ideas here what exactly then should investors be doing given the fact that the fed is kind of in play the real ramifications don't happen until, you know, years maybe even a decade from now. how exactly do you position begin that kind of environment >> well, i think broadly speaking, dom, you know, invest doors should contin investors should keep market weight stocks.

if they had sold out, they would ploenl want to get back to whatever their asset allocation is for stocks. and then a little bit more in the weeds, since the fed bias will be to print money, that will nudge the dollar down and help large cap growth stocks versus small cap value stocks. and as far as sectors go, the s&p sectors look attractive right now. consumer diskregcretionardiscre, telecoms, they look attractive and there is earnings visibility there. >> all right rob morgan, thank you for your thoughts appreciate it. >> thanks a lot. and when we come back on the show, the u.s. looks to crack down on chinese social media apps the new comments from this country's top diplomats. >> and yes earnings season is

upon us. the tough expectations if there could even be expectations and massive pay day for one of the nfl's top quarterbacks. patrick mahomes signs the most lucrative contract in history. the number if you haven't seen it is mind boggling. we'll tell you what it is later on you say that customers make their own rules.

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some cloudy skies over hong kong, that is the image you're seeing where it is just around we'll call it 5:13 p.m. local time there let's get a check on some of the other top stocks on the move so far today. samsung says that its second quarter profit likely rose 23% growth is being driven by demand for memory chips used in pcs and servers as the pandemic forces more people to work from home. in april, samsung projected profits to fall due to lower sales of smartphones, tvs and other products and sun run is buying vivid solar for $1.5 billion the company specialized in solar panels for residential use are and vivid shareholders will receive roughly half a sun run share for each share that they

currently own. and sirieairius xm is repory close to a deal to buy stitcher. they have a premium service for $4.99 per month that lets listeners listen to podcasts bought advertisements. now to a developing story and continued tense relations between the u.s. and china secretary of state mike pompeo says that the u.s. is looking at banning tiktok and other chinese social media pompeo making those remarks in an interview just yesterday adding that the trump administration has been and will continue scrutinizing chinese technology firms the secretary citing past efforts against huawei and is

zte. tiktok was not immediately available for comment. and tiktok announced that it will seize operations in hong kong amid china's very controversial new national security law there tiktok joining the likes of facebook, google and twitter which have said that they will no longer process hong kong's government requests for user data and your mieunice has that situ. >> it has decided that it is leaving the hong kong market all toe together and it did tell us that in lights of recent events, they decided to stop operations in hong kong. now, tiktok is in a precarious and challenging situation because of its close ties to china. and unlike facebook or twitter, which could always just walk

away from hong kong because they don't have any close ties to china, tiktok's parent is based here in beijing. a company called bite dance. and tiktok has come under tremendous pressure from congress and as well as secretary of state mike pompeo and been warned or at least threatened that it could actually have its business disrupted in the united states ditching hong kong in some respects would help eliminate a vulnerability for tiktok i think that this really highlights some of the concerns that businesses have here as u.s./china tensions continue to grow in fact u.s. business groups sent a letter to the trump administration urging them to continue to follow through with their pledges on the u.s./china phase one trade deal and in fact one businessman that i was talking to said that he is concerned that this is just turning in to a u.s./china death spiral especially over hong

kong >> so i mean, the hong kong situation has become so complex now that it is drawing in companies and perhaps making them take a stand. this is technology we're talking about right now. is there any other indication, near or talk abo fear or talk about whether businesses other than technology will now start to take a stand with regard to their operations in hong kong as well i think that hong kong is a massive financial services center within east asia. there is a lot of traffic and commerce that goes through there. what exactly is the overall implication if hong kong continues on this path >> that is what everyone is asking right now and in terms of it touching other industries, would he have already seen it. for example in the financial industry when hsbc and standard charter had come out saying that they were in favor of the national security law, well, the uk government has actually admonished hsbc for that stance. it is something that the lot of

people are wondering which side they should come out on or if they should come out openly in favor or against this national security law all together. and what does that mean for their business and the chinese foreign ministry weighed in today saying again that only a very few number of people would be affected by this national security law. and in hong kong itself, carrie lam the chief executive said that nobody has to worry as long as they don't creditsoss a red e of course we don't knowwhere that red line is >> i was just going to say, what are the red lines and who makes them that is the big controversy. thank you very much. still on deck, activists look to flex their economic muscle at the checkout counter and send a message on racial equality in this country new details at the new process is coming up

let's get a check on the other top headlines. frances has the latest >> yeah, we start off thorn with customer delaying the third phase of its reopening process as cases of coronavirus surge and the state's governor says that he is erring on the side of caution. and stage three was set to begin july 20th. and the mayor of atlanta announced that she has tested positive for covid-19. bottoms says she does not have any symptoms and has been diligent about wearing a mask and washing her hands. patrick mahomes will be staying in super storm of staying in kansas city after signings richest contract in sports history, a ten year deal worth just over half a billion dollars. and including $140 million guaranteed in case of injury the contract keeps him in kansas city for the next 12 seasons

the 24-year-old helped deliver the chiefs first super bowl in 50 years he was the 2018 league mvp he is living his best life right now. >> and i'll say he deserves the money and i say that as a 49ers fan having watched him dismantle our defense in basically a quarter in the super bowl to win it after we had a ten point lead so -- >> you had to bring that up. frances. i blamg yo i blame you. >> his fans have to be so happy. >> thank you so much still ahead here, a very difficult employment outlook as this country as others fight to restart their economies. the new numbers out this morning. and much more ahead. when you say what you're in the mood for,

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you see there, futures pointing to a pull back this morning after another strong rally on wall street to kick off the week the big test for markets right now. coronavirus data, the ability of states to reopen. economic names and, yes, earnings season right around the corner as well plus facebook ceo mark zuckerberg set to meet with civil rights groups leading an ad boycott of the social media giant, all these stories and

more straight ahead. it is tuesday, july 7, 2020. you are watching "worldwide exchange" on cnbc. welcome back to the show i'm dominic chu in for brian sullivan here is how your money and investments look as we are halfway through the 5:00 a.m. eastern time hour. stock futures as we said pointing to a lower open at this stage. we are near the lows of the session. the dow is implied lower by nearly 300 points, the s&p would open lower by about 29 points and the nasdaq down by around 55 and this comes after a very strong session that saw the dow jump more than 450 points yesterday and the s&p did notch its fifth straight positive session. by the way, the nasdaq, it continues its wild up side run jumping more than 2% yesterday to hit a new all-time high as you can see there. meanwhile you have oil prices this morning showing some signs

of at least a bit of a pullback as well. west texas intermediate down a bit. and brent crude 42.53 the last trade there. and new data on global unemployment and the people most vulnerable as communities everywhere attempt to recover from the impact of the pandemic. and ylan mui is joining us with the numbers. what do you know when unemployment around the world? >> they are projecting a rise in unemployment even under their most optimistic scenario assuming that the virus is under relative control, the eoyd is

projecting 9.4%, but if a second wave of the virus is unleashed, the jobless rate could hit 12.6%. now, those numbers look even worse in the u.s the best case by the oecd is a 10.4% unemployment rate in the fourth quarter in the u.s. and that would rise to 16.9% if there is a resurgence of covid and the secretary-general is warning that the virus is taking a big actual on those most vulnerable he says countries need to do everything that they can to avoid the jobs crisis from turning into a social crisis so the eocd points out that it is harder for poor people to shelter at home. high income employees are 50% more likely to be able to work from home while low income employees were twice as likely to have to stop working all-together meanwhile the virus also had a disparate impact on women. they were a majority of the ploy

degrees on the front lines in health care sector, retail, food and beverage and hotels and the young people are also at risk. in the uk, young people were 2.5 times more likely 20 work in a shutdown sector and that could have a lifetime impact on their potential earnings >> and we've talked about some of the wealth gap issues because of covid-19 here in this country. and this is a very developed nation we're an economic powerhouse we had been pre-crisis and what exactly does that say, what is the biggest worry i guess from the eocd now, does it take longer for some of the other countries that may not have the level of sophistication that the u.s. has in coming back or bouncing back from a crisis like this if there is a second wave >> i think one of the concerns here is that the inequality that is being exacerbated in the u.s.

is playing out in a more dramatic sense across countries around the world the oecd says that that means that there are really an urgent need for short term policies including extending unemployment benefits, as well as emergency support for all the different types of work that we do now gig employees, part time workers, the slself employed. and they are also calling for a longer term rethink of social policies that ensure that there is vocational education so people have more opportunities, and that ensures that workers remain connected to their workplaces because that is what will keep folks employed in the long term. >> yeah, lawmakers around the world will have their hands full if another wave happens. ylan mui, thank you very much. and making headlines this morning as well, palantir filing

to go public it works with companies and government agencies and long been one of the most highly valued venture capital backed companies out there. peter teal is among their co-founders. and separate from an ipo, palantir filed paperwork last year saying it was raising nearly $1 billion in capital and it is probably one of the most watched unicorns. private companies with $1 billion valuations or more out there right now. we'll continue to watch that now to the anticipation starting the q2 earnings season. it is getting under way and expectations are gym accordi grim results are expected to be down 43% as companies face crippling economic lockdowns

o if more, i'm joined by art hogan. do we know the impact? >> we really don't know. two of the biggest problems is the first quarter and second quarter will look bad because we were involved with covid-19 for the entirety of the second quarter and really thrust into the economic activity in the second quarter we had one or two good months in the first quarter. so see gwenn that wiquen the first quarter. so see gwenn that wiquetially w enough and everybody cut their guidance so every estimate is literally a best guess it is certainly knot something that anybody has a great confidence in. so hard to know how bad it will get. but all of that is anticipated i don't think that anyone is looking at the second quarter of a highlight of the data that we will react to this year. i certainly think if we get some guidance, remember, there is about 17 that gave guidance for last quarter and so really we don't know what is doing on agoing on and we hoe

saw sequential improvement in the last month and heading in to the summertime as activity started to pick up so this is one of those quarters where we know that everyone has the ability to throw in the kitchen sink here. expectations have never been lower and i think that we'll learn more about the future than we will about the past >> so let's talk about the types of companies because there are a certain handful of companies that i lookinged at as possible canaries in the coal mine, benchmarks, leading indicators of what is happening else where. what types of companies will you be watching more closely this earnings season to give you some sense of what will happen for the rest of the year >> on one end of the spectrum, you look at the companies that where he kn we know have fared well. like yesterday with amazon and netflix. we know that handful of technology companies that seem to do well agnostic of the level of economic activity and probably more important is hearing from companies like fedex. they had a nice report last

week transportation stocks, are we actually delivering a lot of packages but even more so, anybody that is involved in travel and leisure, are they seeing a hint of reopening and are they ongoing concerns so on one end the class of stock that will do well in the pandemic as we've seen where people are staying at home and the other end is all those things that we'll probably do last and just how bad are those industries, like travel and leisure, cruise lines and airports somewhere in the middle is the s&p 500 and we hope that there is a sequential improvement month over month and we're hearing glimmers of hope >> what needs to happen with the earnings season in particular? what to companies need to say this time around for them to continue this bull run >> i think we're at a point

right now where i think that incremental information that we get on covid cases has largely become more important to investors than economic data and earnings i think this is a quarter that we know is going to be terrible. any guidance that things have gotten a bit better heading into the third quarter as the third quarter has started and certainly as they start will help but understand, we are clearly coming into 24 withis with the t expectations we've ever seen and that is understandable but i think what is more important, investors seem to be paying more attention to what is xg on going on in the here and now than they are at things like the weekly jobless claims. so i think that it is important to understand that when we line up our priorities and earning season is kicking off, that is probably second or third in terms of what investors are paying attention to. >> all right clarity sought for sure.

art hogan, thank you very much and coming up, facebook ceo mark zuckerberg set to meet with civil rights groups today amid an ad boycott of the social media giant. we'll talk the expectations for that meeting and first as we head to break, here are some of the this morning's other headlines. target, walmart and dick's among major retailers pulling merchandise carrying the name of the washington team. they are evaluating considering changing their team. and colin kaepernick has signed a production deal with disney. the former nfl quarterback will tell the story of his journey from the football 2350e8d for h field to a civil rights leader sfloop a and toich badeutsche bank ae enter a deal

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economic activists are bringing their message to the checkout counter and urging black americans to reconsider where they spend their money today. courtney reagan has more on what we are calling black jouout day. what is it >> good morning. so today is blackout day

it is a spending movement or nonspending movement as the case may be started by an individual named calvin it urges bl s black americans a others not to spend a dollar at a nonblack owned business or brand today. so the goal is to use spending power to increase awareness of the need for equal financial and economic opportunity for the black community. koorl according to nielsen, despite making up 14% of the population, black households only account for 10% of total spending in 2019 however, purchasing power within the community has gone be up about 108% between the use 2000 and 2017 and that is more than any other race black consumer spending is expected to grow to 1.8 trillion by the year 2024 so while making up 14% of the population, black consumers do outspend groups in some

categories particularly in ethnic hair and beauty and women's fragrances and men's toiletries sephora is in fact closing its u.s. stores today between 10:00 a.m. and 12:00 p.m. local time to discuss racial profiling and internal retail bias, a study that the company itself commissioned so sephora corporate employees will also do conscience leadership training focusing on unconscious bias, inclusive behaviors and overcoming road blocks and they say the message is simple, making it easy for a broad base of consumers to participate. he thinks of the movement akin to small business saturday it provides a model for what the impact could be as consumers are shown to be willing to focus their shopping in a boost to black owned businesses should be meaningful >> so as we talk a little bit

about the movement overall, is there a sense much whof what tht could be this is the first time i've heard of it. what kind of traction could we anticipate this time around? you mentioned some companies like sephora, but how big of an impact are people guessing at? >> i think like a lot of these things, it does take maybe a year or between of sort of this ground swell movement to get under the feet of everyone's understanding for an impact of a day like this. and so that is why some of the retail consultants are pointing us to a small business saturday. i think that we all are familiar with what black friday was and it took some time for small business saturday, the idea of shopping at small businesses on that saturday of thanksgiving weekend to really take off and so this year it may not be potentially as big as it could be in years that come as people have a growing awareness of it, as companies are able to rekt and sort of be thoughtful with their messaging and programming

both for their internal employees as well as the external focus for consumers >> an economic impact we'll see if it plays out and how it can grow court an courtney, thank you. and now the backlash against facebook and the advertising bicot againbi c boycott. top officials are set to meet with groups behind the boycott over hate speech and misinformation and speaking with cnbc ahead of the meeting, the ceo of the naacp laid out the goal of the campaign >> we've spoken with facebook in march and the leadership team for over two years and we're simply asking them to ensure that people are safe and our democracy is protected, racial hatred groups should not be able to utilize the platform to meet up, recruit and execute harmful

activities on the american public nor should the platform be used by domestic or foreign interests to subvert our democracy. >> and for more on what to expect from today's meeting, i'm joined by sarah fisher, a media reporter as axios. always great to get your thoughts take us through what the expectations are, what should we be looking for or listening to with regard to this meeting between facebook and these civile righcivi le rights groups >> there are three things that we'll be looking for and there are the expectations from the groups is, one, they want facebook to stop having misinformation on its platform two, they want facebook to curb hate speech on its platform. and three, overall they want facebook to do something about minority communities that feel targeted whether that be by white supremacist groups or as the ceo of the naacp mentioned, foreign

actor 245s as that are trying te race as a way to meddle in our democracy. >> so if that is the case, i mean, the controversy around this whole process and the reason why mark zuckerberg is taking fire from his own employees at facebook is that his position is facebook should not be the arbiter rig right? they should be a neutral platform and people use the platform on both sides how much does that then play in to the discussion if are you thinking with civil rights groups who are specifically saying that you need to draw a line on what things you can and cannot put on that platform. >> that is a great point and expect that to be a focal point of the conversation today. facebook doesn't want to meddle in the content that is on its platform too much. it is a business model problem for them but also they say it might curb free speech. and on the other side, you have representatives from some of the minority groups, color of change, naacp, anti-defamation

league who are saying that we get that, but at the end of the day, your platform is causing major harm to people who are using it isn't consumers. and so expect that balance between free speech and democracy to be a focal point of what is discussed today. also expect facebook to talk about the pressure that these groups are putting on brands you just had the bill board up on the screen that is now over 400 brands that are boycotting facebook at the helm of the request of the civil rights groups i expect facebook leaders who will be mark zuckerberg, 145ishl sandberg and chris cox to talk about what their conversations are like with brands and whether or not they think the brands would ever come back if facebook were to make some concessions. >> and so one of mark zuckerberg's more controversial comments recently was something that was reported during his town hall meeting with employees in that these advertisers will be back eventually i mean, we put up that bill

board like you said, many of those brands are boycotting. and many don't spend as much as others do. but black to block tore a proctor and gamble say that they won't address it in a very specific way so what exactly does that say about the brands, which ones want to go that route and make a stand here and which ones say you know what, this is not our business, this is a business decision from their point of view and we're not going to meddle in it >> i agree with mark zuckerberg. i think a lot of these brands are going to come back being and we know that because there is historical precedent that shows that they do.being and we know that because there is historical precedent that shows that they do.eing. and we know that because there is historical precedent that shows that they do.ing and we know that because there is historical precedent that shows that they do.ng. and we know that because there is historical precedent that shows that they do.g and we know that because there is historical precedent that shows that they do.. and we know that because there is historical precedent that shows that they do a lot of advertisers boycotted youtube but came back within a year so most are holding their ad spending only for the month of july julile isy lis a slow time anyw retail and advertising so expect them to come back q4

when they really need to push goods around the holidays. to your point about proctor and gamble, i want to make this distunks unilever spent about $2 million on facebook ads in june. proctor and gamble spent over $20 million. and so you are looking at the big, big firms, walmart, proctor and gamble, they have not yet pulled their ads from facebook and there is a reason for that the big, big advertisers don't want to meddle too much in this fight because at the end of the day, facebook is an effective marketing tool for them to push goods. >> it is an advertising juggernaut for sure. sarah fisher, always great to get your thoughts. thank you very much. still on deck for the show, stocks set to snap their recent hot streak with futures pointing to losses. you can see the dow employed open down 300 points and we'll talk whether the markets have room to r ubn amid

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market's recent win streak potentially taking a bit of pause today amid the coronavirus worries. and joining me now is steve chevr chevron. steve, is this bull run going to continue >> yeah, i think medium to long term it does we're exiting recession, we're entering recovery. and so far even though the virus data has picked up, which is quite worrisome, the measures that have been put in place, the reshutdowns have been very targeted it is the restaurant industry or bars it is not a blanket reshutdown and that has allowed the economic data to continue to be pretty good. so there is a tug of war between the better virus day that -- i'm sorry, the worse virus data and

the better economic data and so far the economic data is winning. >> but that kind of flies in the face of all of the tough thatstw say the chief concern is the virus. why are we shrugging that off and fafshing some of the back ward looking economic data >> your guess is as good as mine on that one. i think what it comes down to is the virus data is the key concern for the market in it threatens the reopening. and if it threatens the economic recovery coming from that opening. so far one of the phenomenon that we're seeing is that death rates have been lower because there is a younger population contracting the virus. and so in that environment, states have so far been able to again shut down in a more targeted way and when they do that, the bum beilk of the econ still has to 3wr5ioperate. you are seeing some softness

if it feeds into more traditional data, then you have a problem. if it doesn't, if you are able to try to put some of the measures in place to contain the virus and it doesn't cause a large scale shutdown, then i think that the markets can live where the virus. which isn't something we thought that it could do a month or twoing a gtwo ing ago. >> and we've been showing all the sectors that have been surging. and the notion that the trend is your friend perhaps is favorable, but it sounds like the uncertainty makes us all want to be in cash 100%. what are you doing as a portfolio manager. >> the way we think about this, if you didn't have a surge in cases, and i know that is not the world we live in, but if you didn't, this would be a maximum bullish moment you'd be exiting recession, sbhering recov entering recovery, a lot of slack in the economy

and that is when you want to buy. so we're tilted towards being overweight stocks. but we have to temper that because i do have a pick upin virus cases. so we find ourselves modestly overweight stocks. we like growth because it has been defensive and we think that we have good cash flows there. and when we feel better, we dip into value when we're conservative, we shy away from the cyclical value because that needs economic growth and that is a function of how well the reopening goes. >> and so what parts of the market do you like and what do you stay away from >> we like small caps here we do like growth. we think that is a safe place to be we increasingly like international because the virus data is a little bit better there. we're staying away from the deep sick cyclicals because we think that there will be choppiness >> all right steve, always great to get your

thoughts and that does it for "worldwide exchange. and futures are pointing to some losses, almost 300 points for the dow. we gained 459 points yesterday "squawk box" is coming up next when you say what you're in the mood for, the xfinity voiceremote will find exactly that. happy stuff. if the groups happy, i'm happy. you can even say a famous movie quote and it will know the right movie. circle of trust, greg. relax the needles are jumping. you can learn something new any time. education.

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stock futures are pointing to a pretty significant pull back this morning after the dow gained 460 points yesterday. and nasdaq closed at another new high crackdown in hong kong, social media companies suspending service over china's new security law and plus new pandemic rollbacks in several countries u.s. states and cities, dr.

gottlieb will weigh in this is tuesday, july 7, "squawk box" begins right now. good morning i'm andrew ross sorkin and along with joe kernen and melissa lee is in the house virtually with us becky is off nice to see you, melissa and this is a first. this is actually a first for joe, and i and becky i think that we've been together every day through this whole cra craziness. we'll start to try to take well deserved vacation time over the summer so becky has the day off so welcome >> it's been a while,