welcome back this is power lunch. welcome aboard most of them under pressure. look, the nasdaq holding onto gains with names like amazon, apple and microsoft. all at record highs. speaking of record highs, tesla on track for its fifth straight record close

the bill nar has the blews these days he will explain why his businesses are struggling and the things that could get worse beyond that and what he's trying to do about that "power lunch" starts right now yes, it does the nasdaq hitting another all time high today. it's on strachan for its sixth straight day in the green. bob has more for us. >> modest weakness on the day. that tends to mean tech will still out perform. that's happening today. it's airlines under perform and

transports and logistics companies like jb hunt and fedex tend to out perform. this has been going on since the coronavirus issue back in february and march and again you can see that happening today. ben carlson pointed this out the top ten stocks by market caps are up 10% so far this year the top 50 are up 2% but look at the bottom 50. down 39% that's not a typo. that's a huge disparity. it's true big stocks tend to be important. they always move the market. bottom line is they have never been more important than they are right now. the trends are pretty typical of july fairly narrow trading ranges like volume and breadth

unimpressive william, what a treat. two days in a row i get to see you. >> thank you, bob. >> three more. hopefully. despite be outperformance of the big tech stocks, that was an incredible stock, blackrock is getting more caution they have downgraded to neutral due to rising coronavirus cases and because of stimulus running out. it's more pain ahead of investors with earnings season around the corner. larry adams is at raymond james and nela richardson is here. larry, do you share this caution on the stock market? >> so, longer term i'm opt mitsic mit mystic on tequity markets

it's issues sentable to some disappointments and just to give you a couple, if you look at, you talked about the covid-19 increasing its debt starts to hamper economic growth we have 20% and 10% gdp growth factored in for the third and fourth quarter of this year. when it comes to the fiscal stimulus package, we think it will get done by the end of this month but if it's delayed or comes in smaller than expected, that could be a disappointment we think that you get a limited. if it's only 50% effective, is that really the pen sanacea tha gets people back to normal activities i think you have to be caution here >> we talk about whether it's the v or u shape you have a k shape this thing is so complex, larry. i don't know how to get into it. boil it down for me. where do you think investors should be positioning here

>> well, i think the problem with the v and a u is they are one dimensional. i think the k is the best letter that you'll have a economy that different sectors will be recovering at different pace and magnitude. if you think about the upper level of the k, those are sectors that weren't impacted by the pandemic such as e commerce and medical devices. that's technology and home improvements >> would you share a lot of what larry is talking about and how do you feel about valuations in the stock market >> if i were to spin off larry's case scenariscenario, i don't k we have the right letter but let's go with that one i think he makes a great point that different sectors will rebound and recover at different

rates. if you look at the sectors that are performing well, we tend to look at the health care sector and technology but within those sectors we're looking at industries that goes to your question on valuation. we're looking for deals within sectors and not just sectors broadly speaking when we look at health care, we see a sector that is on a valuation trading at a discount to be overall market we know that health care is defensive stocks it's a good play to be right now as we expect there will be pull backs in this market and health care adviser to be needed in good and bad times and the demographics support health care over long term.

perhaps populism and deglobalization that could be an out growth of this pandemic. it's really focusing on those industries that are built to perform regardless of whether we get vaccine this year or middle of the year nec year >> nela, reading your notes, you say you should position yourself defensively and offensively. i guess this is how you're trying to do that. you have to be very choosy in how you choose those industries that are both either defensive or offensive, right? >> that's correct. that's why the north star has to be strong balance sheets and companies that can grow their dividends over time and regardless of sector

two-thirds of s&p 500 firms have withdrawn their guidance for the year there's a good consensus it will be a rebound in 2021 that's part of the reason we have seen stocks perform so well our caution here is even in a normal business cycle, it typically takes earnings to three years to rebound from a trough in earnings the market is somewhat priced for a disappointment even if the long term trajectory is upwards. >> all right thank you both for your thoughts today. appreciate it. as we have been saying texas and florida both now cumulatively more than 200,000 cases of coronavirus following the fourth of july weekend meg joins us with her daily look at the rising hot spots and the

race for a cure. meg. the numbers are a bit wonky coming out of the july 4th weekend as testing gets delayed. the positive rate up to 8.5% now. this according to ever core isi. the fastest growth in the past week we're seeing south carolina now jump ahead of florida in terms of showing the hot spots charleston, south carolina, now the area in the country with the fastest case doubling time you are seeing jacksonville, florida still there along with sacramento california. i believe this one is from yesterday. new york and new jersey adding three new states to their tristate quarantine list that's the list of now 19 states from which travelers need to quarantine for 14 day ifs they

come into the tristate area. we are seeing just this spread across the united states continue it's try to fund and accelerate the vaccine projects that will support them through late stage clinical trials and ramping up production with the goal of producing 100 million doses by the end of 2020. we talked with ceo about their timing this morning. here is what he told us. >> the scale of starting already and we'll plan on start shipping the 100 million doses in the fourth quarter and be finished during the first quarter of the year >> guys, that timing is a little later than we heard from some of the front runners in the race but that's not stopping novavax

shares from being up 33% on the news this is giving them a huge boost. kelly and bill >> meg, before you go, the question, regarding the growing list of states that new jersey and new york and connecticut want to have people quarantined, when i talk to family and friends and other state, the question i'm always asked about that is how do you enforce that. i'm not sure that i know the answer i don't know if you do either. i know there are penalties that are incured if somebody gets coronavirus here and then they trace it back to somebody who came from another state and didn't quarantine. there's a penalty there. other than that, how do they police this thing. do you know? >> that's the knock on it. everybody says it's just almost impossible to enforce this kind of quarantine because it's sorts of depen dent when governor cuomo announced it, it was depending on the public self-policing. asking people to do this or to tell on their contacts, if they

come in from another state and don't quarantine >> the old honor system which we're all so good at thanks see you later. kelly. coming up, energy financials and real estate leading today's declines you can see the whole sector board. there's only about three sectors in the green right now there's one growing trend in the real estate market that investors are gloflocking to. who benefitted from the paycheck protection program? we'll follow the money right after this break you say that customers make their own rules.

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we know the goal of the ppp was to save jobs, literally to protect paychecks. now that we have a lot more information about who got the money, maybe we can figure out if the program works kate rogers is looking at that part of story for us >> we saw every one from kanye west, to pf chang listed on this disclosure 650,000 plus names were disclosed on this massive spread sheet.

the vast majority of the resip yentss of ppp won't be released. one important question does remain here. how many jobs did the program save as the forgiveness process has just begun you need to use 60% of this loan on payroll in order to be forgiven what's more, just under 50,000 businesses listed zero jobs retained on the data that were released yesterday how did firms that cancel or did not receive ppp loans even make the list cnbc asked the sba to clarify

how this is possible because cancelled loans of which there are about $30 billion were not supposed to be included in the disclosure one more thing to remember as we mentioned yesterday, the program has been extended through august we'll be seeing another data dump according to administration officials once that round closes of loans once again bovr $150,000 back over to you >> we know this program was designed to help small businesses whatever the definition may be but you have found as most of us have, there's some businesses that sort of stretch the definition of small in that regard banks have been the gate keepers in this. they are the ones that help their customers apply for these ppp loans. is that where the break down occurred how did some of these larger entities find themselves receiving money that was supposed to be earmarked for small business >> all of these companies were able to apply under the law as it was written this was rushed out of the gate in order to get aid into the

hands of small businesses that truly needed it. we talked about there being enough blame to go around between the government, the banks the businesses that stretched the limits you had to apply with the bank and fill out a much shortened sba application to get the money out the door quickly in terms of larger entities, some of them could file under separate, smaller entities that's how we're seeing names get the money. up to the public to decide if they feel this was properly done we had a feeling there would be surprises on the list, for sure. >> thanks very much. speaking of spriedurprises, thet of people and businesses in washington that received ppp money may surprise you kayla has that part of the story. >> among the 700,000 recipients of those large ppp loans, some boldface names stand out family businesses associated with some trump administration officials did receive loans.

maritime, a shipping company one by transportation secretary family received up to $500,000 a d.o.t. spokesman said she is not affiliated with the business and have no idea how they got the loan a trucking company founded by agriculture secretary sunny purdue received up to $350,000 a spokesperson for usda says the loan was roughly $182,000 supported 27 jobs and complies with all ethics rules. separately, a media company, hotels and a school with backing from the kushner family also received loans on capitol hill, access to ppp was bipartisan it went to a wine ri in which devin nunes has a stake. family businesses of two oklahoma republicans received money and a former employer of democratic senate candidate got aide.

fiejly, among dozens of law firms listed were three smaller shops that employee president trump's impeachment defense attorneys. j those firms got up to $14 million. bill, there are dozens of law firms, even more lobbying shops and private schools with the deep endowments and political ties that got money. there are simply too much to include in a minute of air time. bill and kelly, back to you. >> you gave it the old college try. thank you. see you later. kelly. still ahead, billionaire tilman is ahead. there's no v

the stock hitting another record high today it has more than tripled this year it's up 220% even the analysts are throwing in the towel we have the tas,ex osdeil nt.

welcome back tesla is on a tear notching its fifth straight day of records ar bull case today. tesla's $259 billion market cap now makes it larger than 97% of the s&p 500.

todd gordon. >> it just keeps going higher day after day. you said it yourself it's been very fun to watch. that's all we've been doing is watching which is not all that great. it doesn't make money yet. it's very difficult to do so the shorts start to win a little bit and everybody thinks they will go out of business, that's been the traditional buy point if you want to be a buyer of tesla, i think you have to wait for that pull back and be very careful here >> todd, you're watching the technicals is there a pull back in store and if so, when? >> not sure when that pull back might come we agree on the fundamental

point of view. valuation is high when using traditional metrics but growth stocks command a higher p/e. we believe tesla is the leader in the large cap universe. the first inning was a massive we are looking at earnings next quarter, july 22nd highest value car company in the u.s. if they beat, it will be 4 con sec tifr quative quarters. it's widely accepted in china. we continue to hold tesla. >> competition will be key especially in growth markets like china good discussion. thanks for joining me.

thank you. still ahead, as covid-19 cases surge, state and local governments across the u.s. are forcing some businesses to close again. billionaire tilman says uncertainty and indecision from political leaders is making things much worse. it's tilman tuesday when we come back stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more.

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welcome back, every one. here is your cnbc news update at this hour. in new jersey, huge lines that stretch for blocks as that state's motorcycle commission reopened its offices today in newark, police were called in to help deal with a crowd of hundreds and they were told to

disperse when one office closed after hitting capacity new details from mary trump's tell all book on her family the new york times reports it includes an acquisition that president trump tweeted on his college strans test by paying someone to take it for him in richmond, virginia, another confederate statue has been removed. the monument was to general jeb stewart but it's the third major statue to be taken down in the formal capital of the confederacy. bill, back to you. thank you. see you later. let's get you caught up on the market mixed day. down day for the dow and s&p but nasdaq has been trying to hang in there with a gain it's turned negative in the last few minutes. the likes of the apples and the amazons and some of the other big tech giants have been

hitting all time highs again today. his business is now down more than 50% year on year. with the surge in cases the past two weeks, he has seen demand driep dry up and the people disappear. welcome back talk to us as many people are going, you don't oerpts in just one state. you have city by city and state by state patch work of decisions that is causing all of these haw headaches. what's the right answer here in. >> i think it's some point the federal government has got to take it away from the states and you've got to have clarity this is so hard on businesses.

it's so hard on our employees. just like yesterday, we're told today that we're closed in all the san diego restaurants and all of southern california we lose another 12 restaurants you already brought in your big orders in for the week you already have the food. you can't send it back they don't give us a 24, 48 hour it's all the counties. we can't even oerpperate when we went back to 50%, if your county had this percentage of cases, you're fine. at some point we have to take all the politics out of it and the federal government with all the experts because every state, every city has their experts and we know about the practice of medicine let's get all the best in one

room and let's come up with a plan for the united states of america. we asked them to get off of unemployment they get to come to work for three days and they're off again. it's cruel and inhumane what we're doing to people right now. for those families, my heart goes out to you. at some point we've got do make a decision and just tell me, you'll be open 50% through the end of the year. you'll be open 25% to open and cleez me and open and close me is lit rally ridiculous >> it must be exhausting

maybe that feels like a necessary thing but for the restaurants it feels like it's not necessary and we should avoid it because it's one of the more risky behaviors out there we spoke about this last hour. he felt like the restaurant industry was bearing the brunt of all this. >> we are for some reason. explain this to me is why can you get on an airplane and one of my executives flew to san diego at their on doing. i did not make them go there was not an open seat on the plane. not one open seat. they didn't check their temperature. we check people's temperature everywhere doing everything especially employees and a restaurant, why wouldn't you let us operate at 25% with 25 feet social distancing. i could still have ten tables that are open. to make me only do delivery or

to go. there's a fallacy in the system right now and it's just wrong and it's wrong for our industry. more than anything, it's wrong for my employees i'll survivor this but what we're doing to them is cruel >> tilman, i understand your frustration. i get it i go back to something that anthony fauci has been saying all along. it's the virus that will dictate the openings and the closures. i have to believe that you have the ear of government abbott there in texas you have to be talking about, of course you want to get the economy back on track and your stores open again and everything as close to normal as possible it is the virus that's going to dictate what they can do how do you combat that >> the virus isn't dictating right now. that's what i'm saying the politicians are dictating. governor abbott went from 75%

occupancy back to 50% occupancy if restaurants when it was a proven fact that the people in the restaurants were not the ones that were causing the spread it was the bars and the nightclubs and the beaches and the lakes in texas he didn't shut us down he just countdown us to pull back that's what i wish the government would do across the whole nation to say, if you had this many percentage of cases in your particular county or city, you need to be at this capacity. it isn't going to kill anybody for me to be at 25% capacity in restaurant in california or new york or florida right now. social distancing and masks. why do some have to distance and not open and others do it's just unfair right now that's what i have a problem with >> tilman, i'm curious if your restaurants as this drags on and as you become frustrated with various parts of the country,

would you close them permanently, relocate them elsewhere. what options are now under consideration? >> we're definitely going to lose restaurants just because you have landlords that don't want to work with you and they see you might have a good lease and they have an opportunity to get you out so you'll have a lot of wars. i hope that i will take certain cases as far as up the judicial ladder that i can go i'm doing 25 or 50% or i only have a patio but yet they want 100% of their rent this is where the government needs to step in and they need to stay if you only are open 50%, you should only have to pay 50% of your rent you should only have to pay 50% on your loan to the landlords and the government needs to be

backstopping it at higher level. it's not just at the individual anymore in getting out a quick check from the white house it's -- we've got to move up the ladder and support the developers and we need to support the banking institutions who have the loans so this whole doesn't come apart and you don't lose 30% of the restaurants and retail in the united states. >> let me turn you to the nba and your beloved rockets we're getting closer to the orlando bubble when those teams will be competing there. what's your expectation out of this thing any time you get a few hundred people in there. i hope we don't have people sneak in and there's some

straight guidelines in there somebody will be in there for a newgratulate my guys i think we leave on thursday morning. hopefully we can keep the cases down to a minimum and you don't lose a bunch of super stars on any one team we have a real champion this year it's a long way to finish line look how quick everything is changing i promise you before the days over, somebody will do something to totally disrupt my business today at a casino, amusement park or at one of my restaurants. or my basketball team. >> speaking of the basketball team, are you going to make any money off of this thing. are you trying to cut losses or improve the mood of nba fans clearly you must believe the

risks, the reward is out weighing the risk? what's going to happen down there? >> let's -- i'm going to be lons wi -- honest with you. it always comes down to money. these are very healthy guys. like i've said before, two of my kids had covid and they were fine i know so many people that have it in texas right now. i have so many friends that have it i only know one person that's ever been in the hospital because of it. these are healthy guys if one of them isn't healthy, they shouldn't go down there we should still pay them regardless these guys are going to be fine. the players need to play to get paid and you've got to get the tv money you also want to keep your fan base for next year if it ever becomes unhealthy, i promise you, the players, the owners and the nba officer together will decide that this isn't the right thing. as soon as it becomes dangerous,

i can promise you we don't do it >> final question, what is your message for the white house, for the president today. we started off talking about how you wish there was a harmonized federal plan on covid. what would your message be to the oval office right now? >> well, my message is, let's not have experts in every city and state and county and let's get the smartest people in the united states into the oval office and let's come up with a system and plan and give everybody clarity in this country and do everything by percentages. if you're a small city or a big city or a small state or a big state, we all play by the same rules. we need to fix this ppp. i commend the billionaires that took the money and stoods up for their employees and took the abuse in the last couple of days i am not one of those people and i disappointed my people because those people got paid.

i'm the bad person here. i should have taken the abuse and paid my employees by taking the p ppp it was designed for all restaurants and retail that's why they designed each one, not companies, 500 employees or less on an individual basis then the government caught some heat go ahead >> i think this is really interesting point. let me follow up on it when you hear the coverage of people say how can these billionaire owned companies take these loans. these guys are literally billionaires, why shouldn't they be the deep pocketed ones to pay for it what's your response this is the main reaction most people have when they hear about companies that took the money and owned by billionaires. they say shouldn't the people have the deep pockets to pay their workers. >> kelly, that's just nonsense it's -- i'm a billionaire. i have equity in my businesses all my different businesses. i'm worth a few billion dollars. i don't have the cash laying

around to go make $150 million payroll every single month that i'm closed you have equity on paper that's just the way it is. for people that are just naive and don't understand all right. nobody has that kind of money. i'm not saying nobody but businesses don't have that you have equity in them. just like you have equity in your house are you going to go sell your house? are you going tykeake a loan ouo your house you can pay your two housekeepers it's the same thing on a different scale. >> it's great do have you as always thank you so much. >> thanks. >> thanks guys tomorrow we're going to speak with another power broker in the hospitality and sports industries jonathan tisch that's tomorrow on power lunch starting at 2:00 p.m >> that should be very

interesting. what are we going to do about an nfl season this year let's see, we're down about 200 points only handful of 30 stocks higher at the moment. walmart, the leader among those. we'll tell you why that stock is rising and covid-19 has caused a big change in the desire abilities of real estate especially for offices we'll talk to the head of a to real estate firm about what he is seeing, coming up experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. amazing school district. the hoa has been very involved. these shrubs aren't board approved. you need to break down your cardboard. thank you. violation. violation. i see you've met cynthia. at least geico makes bundling

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>> it targets companies like amazon and expedia which pay high salaries. the payroll tax applies to companies with more than $7 million in payroll and the rate is between .7 and 2.4% depending on how many employees are making $150,000 a year. the tax is expected to bring in 85 million next year and 200 million by 2022. it will go towards coronavirus relief and a continuation of services the decision is a big blow for amazon which fought a head tax back in 2018 you may remember that's after businesses pushed back that tax was lower than the one just passing within weeks of passing that measure the city council repealed it after businesses pushed back. one company which has been support iive of the jump start a

is expaid ya the san francisco county sent the ballot a tax aimed at companies with high earners. that one is called the overpaid executive tax. back do you. >> this seattle tax, it failed before why did it pass this time? >> it's a good question. seems like the time really is right with the pandemic. you're seei ining state and city governments really fighting for those funds because of the lost tax revenue and with so many people out of work it just seems like there is this ground swell and out rage we have seen that really makes conditions right for the passage of these measures >> very good thanks for joining us on that. kelly. coming up, we're checking on the stats e of states when it comes to diversity stay with us on power lunch.

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welcome back we talked about the importance of inclusiveness and diversity for companies looking to attract top talent it also matters to states competing each other to draw workers and businesses all day to day we're looking at the state of the states. our scott cohen joins us with more on that scott? >> hi, kelly this is the day we normally

crown the top states for business but one thing that we had noticed over the last couple years is what you just mentioned, growing importance in terms of inclus ofness well predates the death of george floyd and the racial consciousness that emerged from. that there is an economic argument to be made for this the more inclusive a state, is the broader the workforce it can attract. one place they are coming to terms with that is in virginia where last month governor ralph northom tried to put his push to get rid of confederate monuments in economic terms. >> while there will be an expense to removing these confederate monuments, i think there's a much greater expense when we don't welcome people to virginia, when we are not inclusive in virginia. >> beyond the symbolic, virginia just passed the virginia values act, the strongest anti-discrimination law in the south. it just took effect last week.

virginia now joins five other states across the country, delaware, maryland, oregon, connecticut, and illinois that bar all forms of discrimination, age, sex, sexual orientation, race, religion, national origin, marital status and gender identity by contrast, five states offer no statewide protections, alabama, georgia, mississippi, north carolina, and texas. alabama, mississippi and texas also prohibit local jurisdictions from adopting measures of their own. now the laws alone are no guarantee of inclusiveness case in point, minnesota has very strong anti-discrimination laws this is something that when we hopefully get back to our regular america's top states for business study we can see what businesses are doing, how they respond to this. it's very much an open question right now. clearly, snomething that son th minds of business people and economic developers.

guys scott, thank you i want to know if that radio works behind you that's another conversation. >> it does >> see you later, thanks coming up, how coronavirus is affecting real estate. the place that's people were fleeing just three months ago are seeing declining covid-19 numbers and the places where they went are the new hot spots. that's coming up next. don't forget, you can always watch or listen to us live on the go on the cnbc app

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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. wilf the largest international -- excuse me, national largest commercial real estate brokerage firm the company says demand for suburban life is outperforming anything in the major urban areas of the country the president and ceo of marcus joins us now to talk about this. the suburbs are hot again,

aren't they? >> great to be with you. thanks for having me on. it was a trend starting to happen already over the last two or three years you have to remember that 60% of millennials are now in their 30s. whoa i will th while they enjoy the lifestyle of central business districts and lack of commuting and joined lifestyle renters, you know, empty nesters moving out of the suburbs and into central business areas, we were beginning to see them migrate back out as they were getting married and having kids and so on and, of course, the health crisis really accelerated that pattern. >> and it's no the just the residents themselves that are going. companies also are looking for suburban space to accommodate a lifestyle that is being dictated by this virus. for example, elevators they don't want those anymore, right? >> you're right, bill. but there is a short term expected reaction to the health

crisis and then there is a long term view. companies are looking for satellite locations where they can have small facility for their employees out in the suburbs who don't want to commute all the way in they don't want to be with large groups they don't want to get into elevators. that's one trend we're seeing. a lot of companies, of course, including ourselves have been very successful operating their business remotely. with thanks to all the advancementes in technology. but at the end of the day, we are reacting to a health crisis that at some point should be resolved we don't know when that is it can take a while. but the long term trend may be a little bit of an overreaction when you hear all the discussions about how permanently nobody is going to want to locate back in central business districts we saw that post 9/11. and those tragedies, of course, because of the reluctance to want to locate in high visibility high-rises in

downtown 18, 24 months later that, began to dissipate it's a normal reaction i just don't think we should count out the long term prospect of the benefits of central business districts >> i think you and i speak for the suburbs, bring it on i'm really, really concerned about what's going to happen to a lot of the urban centers going forward. are we making too much of this trend? >> in the short term, we're not. in the next 18 to 24 months will show a lot of exodus out of central business districts the reaction by suburban areas in accommodating that demand is also something that hasn't been tested yet we're seeing a lot of office vacancy that is being absorbed there is a lot of demand for rental homes that we're seeing people are fleeing shot spots like new york. but just have to keep a long term view on it.

i will say that because of the health crisis and what's happened with the volatility of the stock market and incredibly low interest rates, demand whether it's office space or performance or shopping centers is strong right now. >> we have to go right now thank you. >> we'll see you here tomorrow on "power lunch. "closing bell" starts right now. >> it does, indeed welcome to the "closing bell." i'll wilfred frost along with sara eisen stocks giving back a chunk in yesterday's gains. let's have a look at what is driving the action the coronavirus remains front and center the u.s. approach three million total confirmed cases. the fed saying that some data is pointing to a leveling off of economic activity. the reopening trade pulling back as airlines, cruise stocks and on line travel names move lower. big tech outperforming o