it is the top stories. stocks and winning streaks coming to an end amid the growing coronavirus crisis in this country that outbreak hitting a grim new milestone as officials in one epicenter grapple with a massive surge in cases the trump administration pushing to get students back into the classroom as retailers brace for a new normal when it comes to the back to school shopping season it's wednesday, july 8th and you are watching "worldwide exchange" right here on cnbc

good morning i'm dominic chu in for brian sullivan here's how your money and the global markets are setting their day up with stock futures relatively muted you can see at the opening bell we could be up 35 points for the dow. s&p 500 up roughly 8 points implied and the nasdaq up by about 52 that's if the futures moves hold before the opening bell for regular cash equities trading. this after the dow fell nearly 400 points yesterday the s&p 500 shedding just over 1% there as well snapping its five-day winning streak. you can see the movement throughout the course of the day. falling off towards the closing bell. turning now to the bond market the yield on the benchmark 10-year note yield is slightly higher you can see 65 basis points

or .65%. 2-year note, .16%. 30-year 1.38 let's go worldwide karen cho is live on the worldwide market >> losses yesterday, losses on wall street. roughly down .2 of a percent the ftse has minimized the losses as you threw it over to me, we popped into the green briefly. the market with the stimulus methods going to be done by the german chancellor. we're expecting a relief package to help energy efficiency and it's a green efficiency.

another component is cutting consumption taxes. watching the markets very closely in the u.k we can show you something on the boards for the european markets. we've got food and beverage at the top. more green by sector level that is up by .5 of a percent. industrials, watching that closely. airbus workers striking today protesting against the 15,000 job cuts slated by someone next year the markets watching some of those protests but in terms of better performing parts of the market, technology is out in front. at the bottom, banks we saw a strong rally. that has been reversed as the european markets have been tossed out >> karen tso live in london. thank you very much. let's get more on your

morning's top headlines. cnbc's frank holland is here. >> reporter: good morning, dom the number of covid-19 cases has officially topped 3 million. texas reports more than 10,000 new virus cases. the record-breaking daily surge comes as the state faces a growing outbreak which rivals a peak that new york state faced united airlines is scaling back the flight schedule for august in a securities filing the company says it expects to fly 35% of what it flew last august. that's down from last week's 40% projection civil rights groups call facebook meeting disappoint being. they say they were unable to get commitments from company leaders on how they plan to combat hate speech facebook spokesperson said the meeting was an opportunity to

reconfirm its commitment to combat hate on the services. >> all of that and facebook shares sit near all-time highs. back to the markets now as questions about the economy reopening return amid those surging coronavirus cases frank just spoke of. speaking with cnbc just yesterday cleveland federal reserve president loretta mester said this is leveling off in her region stressing we have a long way to go to get back to normal. >> i just think it's going to be a long road back to where we were in february and i think, you know, that's why the fed has been saying we're there with our tools and we anticipate having very common monetary policy for quite some time in the future. it will take a long time to work through this. >> for more now i'm joined by matt maley, managing director at miller tayback what's interesting here, matt,

is loretta mester had her comments after raphael bostick there's problems brewing >> no question similar to what we saw in january and february i don't think we'll see a 35% pull back in the stock market but people were ignoring the pickup in the coronavirus back then and they're doing the same thing now. the problem is people are so convinced that the fed's going to push the stock market higher because of the liquidity, and i think there's a good chance that all they really want to do is provide a safety net below the market let's face it, for the first five or six years following the financial crisis, their goal was to push the market higher to help the economy because the market was very, very low. they didn't have to worry about creating a bubble. now with the stock market at all-time highs, if they push it a whole lot higher, it's going

to create an even bigger bubble and cause bigger problems down the road some of the warnings they're telling us is they're doing things differently this time they're more concerned about the credit markets than the stock market i don't think it's a coincidence that they've flattened out the rise in their balance sheet. the s&p, the russell and other indexes are in a sideways range for five or six weeks now. >> matt, that old saying about how markets can stay irrational longer than you can stay solvent, that kind of harkens to what's happening a little bit right now. it's not to say i'm making a call for anything over or under valued there have been tremendous moves. we bring up tesla. we show that chart it's been a 45 degree up angle for many of the stocks it doesn't last though

how do you know when things start to taper off >> it's always hard to know the exact top. they can stay irrational longer than we can stay solvent no question that tesla is moving into bubble territory. that doesn't mean it won't eventually change the world. amazon got caught in a bubble and the stock got absolutely creamed back in 2000 it went on to rally. it took many years to change the world and get those levels stocks only rally 45% in five or six days for three reasons number one, it's because they just crashed tesla didn't crash before that 45% increase it was up 163% before that took place. the second way is they're going to come up with a drug that will save the world from something like the coronavirus tesla is not going to do that. the third way is when it gets into a bubble. this stock is getting to a point where could it go to 2,000 i suppose so it could go to 1500. it's getting ripe for a significant pull back.

it will happen a lot sooner than people think and investors need to be careful. let's talk about your strategy given the market dynamics, the extreme up side, down side, sideways momentum if you want to call it that you bring up tesla what else in the market place are you either going into to buy or staying away from and getting out of and selling >> well, the one that looks the best is the biotech area the one thing is that we get -- you know, it is getting a little over budweiser shootout. i -- over bought. you want to be buying that group. i don't think when we come up with a virus -- the vaccine for the virus, that's not going to put an end to the great interest we have in what the biotech industry does. it's not just the coronavirus. we have cancer treatments. mental health, which is becoming such an important issue. all of these drugs in these certain areas.

it's going to take this group much higher over time. on a technical basis it's broken out significantly above the 2015 all-time highs that's very bullish. on a technical basis, that's the area i'm looking at more than any others. >> he's making the call. matt maney likes biotechs. >> thank you, don. when we come back on the show, yet another white house official takes aim at tiktok amid escalating tensions we'll go tochina with the latest gold gold hovering at the highest levels from a decade we'll talk to one expert on whether more up side can still be ahead several major movie chains taking legal action in their bid to reopen amid the surging coronavirus outbreak they're taking legal action for sure very busy action for sure when "worldwide exchange" continues after this save hundreds on your wireless bill

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exchange" on cnbc. let's take a look at stocks on the move shares of amc entertainment jumping on a wall street journal report that the movie theater owner is close a restructuring deal to avoid bankruptcy in the near term. amc's bottom line has been crushed as it had to shut more than 1,000 theaters worldwide. the u.s. locations are set to reopen on july 30th. those shares up 10% pre-market disney sticking to the plans to

reopen the theme parks in orlando, florida, to a limited number of guests on saturday that's even as virus cases in florida have soared. it will help guests enjoy disney world, quote, unquote, responsibly. the shares up 1/4 of a percent levi strauss reporting a wider second quarter loss. the company warning businesses will be hit in the second half as well even as sales have improved at stores that have reopened levis plans to cut 700 non-retail jobs or about 15% of its corporate work force levi strauss ceo chip bergh will be in "squawk on the street" at 10 a.m. eastern time must watch now to the latest developments surrounding tiktok. vice president mike pence becoming the latest white house official to speak out against

the chinese social media app amid continued tensions between the u.s. and china cnbc's argen joins us from guangjo, good morning, good afternoon, good evening, argen. >> reporter: good morning. the comments by mike pence come after mike pompeo said the government is looking at banning tiktok if they did, it would be a very big change of tactic from washington so far, yes, we've seen them go after companies like huawei, big infrastructure companies it would be almost a play out of china's playbook to some extent because as you know, big u.s. firms like google, facebook, twitter are actually blocked in the chinese mainland, but it is part of a bigger battle, the trade war between the u.s. and china. one of the things mike pence flagged up was he was concerned tiktok and others are a threat

to the privacy and security of the country. that hits home to one of the big things washington is concerned about, that is the collection of data by chinese firms and whether they are sending that back to beijing or not and what beijing is doing with that data. let me bring you some of the comments tick toik hktok has ma. we don't store data in china of american users we're not sending any of that data back to beijing if beijing asked us for any of that data, we wouldn't give it to them. it's interesting from tiktok, they are owned by a beijing company called bytedata. they hired kevin mayer, an ex-disney ceo. they are quitting the hong kong market in light of recent events they're doing all they can they can be trusted. back to you. >> so, arjun, let's go through exactly -- i mean, first of all

there is no exactly right now because this is all very much rhetoric on both sides we're talking about a scenario where you could theoretically ban a certain application that's very popular, at least these days, and growing quickly among u.s. user base what exactly then is the narrative around the u.s. employees or the u.s. people tied to tiktok with regard to the government's backlash there? how do they respond? >> reporter: yeah, it's a difficult situation because there's a lot of questions about this firstly, what is the legal basis for blocking services? how do they implement that in india tiktok has been banned. it could have a big impact tiktok in particular has grown its presence in the international markets and in particular in the u.s. the u.s. is one of the most popular markets along with

india. there could be ramifications for the employees and essentially if they shut it down, what does that mean for the data that's currently stored in the u.s. will they delete that? will they give guarantees to the u.s. government that they will be deleting that data? there are so many questions about this and so many ramifications of it. right now i think it's a lot of rhetoric it would be a big step for the u.s. to block an internet services company for what we've seen from this administration, nothing is off the table. >> there is a good amount of saber-rattling thank you very much for the latest on tiktok. the world's most valuable unicorn may be headed for an ipo. alibaba's financial technology fin tech business plans to launch this year targeting a valuation of $200 billion. hoping to sell 5 to 10% of its shares in what would be one of the world's biggest offerings

this year. this is one of the dominant mobile payments company. sources say details have yet to be made. information on the ipo plants are incorrect. alibaba has not commented. what we're showing you are shares of alibaba in u.s. shares and hong kong as well. stick on deck for the show, hotels making changes as trends among travelers shift due to the coronavirus pandemic our own seema mody breaks down what they're doing to keep guests happy at hotels right here today's big number 88%. that's how much capacity fell in united airlines in the month of june over the prior year shares of unitedav he tumbled over 60% this year

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welcome back what you're seeing is a live shot of times square in new york city mid town manhattan. i'm not going to say it because you can see right now the streets are empty for probably a good reason. they have been for weeks now let's get a check on this morning's other top headlines. nbc's frances rivera is not far from there in new york good morning, frances. >> she's not >> it's phillip. >> it's me today >> i blame our producers they told me it was going to be frances. it's good to see you, phillip. >> reporter: good to see you as well, dom.

a health scare to tell you about for chief justice john roberts supreme court spokesman revealed the 65-year-old was hospitalized after falling and injuring his head while out on a walk near his home the injury needed sutures. the chief justice stayed the night in hospital out of an abundance of caution he has suffered from seizures in the past doctors believe the fall was due to lightheadedness due to dehydration. new details in the jeffrey epstein case maxwell is demanding that the epstein estate pay for her legal fees epstein's lawyers reportedly filed a motion to dismiss. that case has been delayed until september. finally on this tuesday, former president jimmy carter celebrated another milestone his 74th wedding anniversary jimmy and rows lynn carter have been married for 27,765 days

making them the longest married presidential couple in american history. the carters grew up together in plains, georgia. they were married in 1946 right after jimmy graduated from the u.s. naval academy carter is also our nation's oldest living president. he is 95 years old now and still going strong. if they haven't written a book yet, they should on how to make a marriage last 74 years. >> amazing. >> phillip, appreciate it. still on deck for the show, s.w. retail advisers stacey dlz he t wiitiserwi the change in the back to school season "worldwide exchange" is back in just a minute. the number one brand to support silky hair, glowing skin, and healthy nails. beauty comes naturally, only from nature's bounty.

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welcome back, stocks are searching for a direction. the dow has now shifted into slightly negative territory. implied open the s&p down by 3 points and the nasdaq up by 18. outside of stocks, gold quietly seeing its own win streak climbing to a nearly 10-year high amid surging demand and the shifting landscape of retail as questions remain about students going back to school the positive signals the sector is seeing today. it is wednesday, july 8th. you are watching "worldwide exchange" on cnbc.

welcome back to the show i'm dominic chu in for brian sullivan today here's how your money and investments look right now as we are halfway through the 5 a.m. eastern hour stock futures are relatively new swinging through modest gains and losses as things currently stand, the dow would open lower by implied 55 points. the s&p off by 2 points and nasdaq marginally higher this after the dow fell 400 points breaking the two-day winning streak the s&p 500 shedding just over 1% as well on that benchmark index. it snapped its five-day winning streak. turning now to the energy markets. we are seeing a bit of action in the oil prices you can see wti crude about 1/4 of a percent lower ice brent crude, $43.03. .1 to the down side. stocks in china continuing

to see solid gains while markets overall in asia were generally mixed. european trading, stocks under some pressure with the cac in france down about 1% helping to lead some of the declines. also check out what's happening with gold prices today. it's holding at a more than 8-year high above $1800 an ounce for the futures market 18 poi 1811 and change. worries about surges in covid-19 and fiscal stimulus lifting demand for the safe haven asset. let's talk about the precious metal with ole hanson. this has been a story that has been pretty much under the radar for many out there why have gold prices been on what has been a steady up trend pretty much the entire year? >> i think we've just basically had a perfect storm of positive

gold drivers you've mentioned fears already, dom. i think adding to this, we're seeing this very -- developments we're seeing in u.s. bond yields what is the alternative to gold? you're looking for yields. you're looking for dividends the real yield in u.s. bonds are negative they're continuing to move deeper into negative territory i think we lost a little bit of focus because the 10-year bond yield has been very steady it's basically boxed in. over the past couple of weeks they have moved higher reflection of higher inflation expectations we're seeing real yields go forward. that is the underlying demand that's driving that. i think also we're seeing the move and testing moves in stock market right now i think as we moveinto the stratosphere, we are seeing increased demand for insurance coming into the market and bonds right now doesn't provide much insurance. that basically is gold and

silver >> what exactly then -- i mean, the traditional view here is, yes, safe haven demand people go there because they're worried about things they go into a bunker down the line they want their canned goods, gold coins and that thing. the inflations expectation thing. none of those are likely scenarios playing out yet gold demand continues to rise what exactly is it about this environment that has people worried about? is inflation really a driver we haven't seen it anywhere else yet except in certain food items and asset prices, specifically stocks >> i think there is a belief that the more impact we're seeing from central banks, the bigger the risk that we may have done too much when we eventually come out of this pandemic and we start to see growth and how central banks are going to rate back in from all of the spending they've done in that period. so i think it is the inflationary worries that are still out there.

then also investors love momentum gold has had a strong run since this interview last year right now my biggest worry is really the fact that we all talk about, it's moving higher. that's always getting me nervous. that's kept me nervous in stock for the past month you can't really use that argument right now overall i think it is basically just the worry about the debasement of the global markets from all of thisly quit at this we're seeing from central banks. the potential inflationary amount we're seeing returning. there are signs of weakness. >> ole, you're not the only person who's worried about asset inflation now. everybody we talk to is somewhat cautious about things right now. i'm curious. when we talk about physical commodity, especially precious metals oftentimes you talk about the financial assets, futures markets, etfs, physical assets

of gold. owning bull onion or coins is it people buying physical gold >> i think it's physical gold. etfes, some of them are physical some are not let's call it paper gold for good measure paper gold demand has been the driver there are discussions and different regions got some pretty high premiums if you want to buy spot gold i think that's fiscal gold some of that is probably some of the ways we're seeing it in march and april. the etf is where the demand is i think etf investors, they tend to be more sticky. they are more long-term focused. it's not leveraged one for one that's where the demand has been if you look at the leveraged

traders, the hedge fund, watch this very closely and we're seeing a big drop in net loss. it dropped to a one-year low it's only the past few weeks we see hedge funds start to accumulate they still have plenty of space to accumulate. there might be speculation because of the breakdown in the trans atlantic spread between the futures in new york, we may have seen some of these funds move their futures positions most of the long-term decisions into the etf to avoid the volatility we had in the spread between gold but overall investment demand is strong etfs and it's starting to pick up the futures. >> looks like the etf could be driving things ole, thank you for those thoughts on gold appreciate it. >> thank you. coming up, schools weighing the physical reopening process

what does that mean for the whole back to school shopping season we will talk expectations coming up next. first as we head out to break, here's a look at the other top headlines. major u.s. movie chains are suing the governor over the phased reopening plan. that plan unfairly targets cinemas and violates operator's first amendment rights. samsung says the galaxy unpack event will take place on august 5th it will unveil the note 20 smartphone the tech company saw a nearly 20% drop in smartphone shipments year over year in the last quarter. quicken loans is going public the nation's largest public lender filed paperwork to go forward under the name rocket companies. the application didn't provide a date or share price. something to keep an eye on. "worldwide ehae"s ckn st moment.ba i i know that every single

time that i suit up, there is a chance that that's the last time.

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a covid-19 vaccine hits the market extended stay hotel rooms tend to be larger, offer a kitchen setup and less interaction with staff and other people they're also generally located in suburban and highway locations which are convenient for customers that drive rather than fly data from sdr show they've consistently outperformed other types of hotels. in may occupancy rising to 51% compared to the 33% average for all u.s. hotels. brands that are benefitting from this growing trend, hilton's homewood suites, extended stay america, marriott's residence inn. if this trend lasts, it could change the type of hotels developers build in the past it was less on the room and investing in food and beverage and the lobby social distancing and masks could make the constructs of the hotel room more important than

the public space dom. >> seema, this is interesting. this is all a play on whether or not the regime, the so-to-speak new world order doesn't last we hope it doesn't the reason you would go to an extended stay hotel is because you're trying to save on the food and beverage experience i'm going to stay there because i'm going to grocery shopping on my own and stock the fridge and be that can't last if we get normal travel trends it's almost like you don't want it to happen, right, seema >> reporter: yeah, it's interesting to see if this trend will last. to your point, some dynamics like social distancing, will it continue in this new world post the pandemic it does offer the luxury of having that kitchen setup which surveys show is extremely important to those who don't like to dine out and like the option to be able to dine in and cook their own food. another way to control that environment. that will be something to watch very closely in the next couple

of months. >> it will be all about the experience i travel i go to restaurants because of the experience but right now these days i'm happier at home we'll see what happens seema mody, thank you very much for that. now to washington, d.c., and president trump pushing to get students back into the classroom in the fall. speaking yesterday during a roundtable event with health and education leaders, the president called on state and local officials to reopen this fall. officials argued the risks of keeping students home outweigh any risks tied to the coronavirus saying students need access to meal programs and mental and behavioral health services and the education as well as schools continue to weigh the reopening, concerns regarding the back to school shopping season continue to grow as well. but one major forecastor is being relatively optimistic and suggest spending may not look that different from years past courtney ragan joins us with

more, and i guess, courtney, it's just about a shift. what we spend on more versus what we spend on less. >> reporter: basis for the theory from the first major back to school forecast because it's coming out in one of the most uncertain starts to a school year in recent history for the nation's 53 million k-12 graders. many aren't sure what cool is going to look like with covid-19 spreading. will it be online, maybe some combination. we don't know entirely it is surprising that deloitte is estimating back to school spending will be on par with 2019 at $529 on average per family for a total of $28.1 billion. the spending does diverge. technology spendingis expected to grow about 28% over last year for that category while spending on clothing will fall 17%.

the amount spent on traditional school supplies, that too forecast to drop 18% while mass merchants will get the highest percentage of spend, things like walmart, target. more parents are interested in closer to home formats not surprising, online and contactless pickups. pre-packed school supply kits are popular. the covid-19 outbreak is the second reason parents would opt for those rather than having to shop for each item potentially in a physical store themselves parents are nervous about sending their kids back to school frankly, 66% say they're anxious about the idea in general and 76% are concerned about health

with the virus still spreading 43% worry the abrupt end to last year left them unprepared and 4 in 10 parents said they shop 4 to 6 weeks out from school starting like normal they are craving the normalcy. you have 1/4 of them that are unsure they're waiting to see what school looks like for their children back over to you. >> courtney, you couldn't blame them for being hedged in their philosophy, right? what if schools do not reopen? there is a huge push it's going to be a huge economic driver for many people, school is a day care, if you will. you send your kids to school, they are being taken care of if you need to go back to work i guess i'm curious about whether or not you do see the retail experience changing because we already know it's

changed with the panpandemic does that change spending? >> reporter: it's so 23ufunny wn we talk about back to school because so much is based on need rather than pure discretion. you get your list or the kids have grown out of the gym shoes from last year those things are necessary to be replaced but i think this year does throw sort of everything into a tailspin maybe you don't need the pencils if you're not writing, if you're going to do things online. if you don't have enough computers for each child in the house, maybe you have to up the spending there maybe you'll see best buy benefit more than staples or office depot they're trying to offer options that make the parents most comfortable for both the setup and how frankly they get those items like the buy online pick

up in store option that is increasingly popular. >> retail catalysts are so key traditionally it's been driven more than 2/3 the u.s. economy courtney ragan, thank you very much for more on that bts or back to school season and spending and the broader retail sector, i'm joined by stacey widlitz i'm curious as a layperson, will the retail experience change given this for back to school season >> dom, it absolutely will change all of the things that you and courtney were just talking about is so valid. do consumers, are they willing to take the risk and spend all of this money on new clothes, new shoes, new lunch boxes and stuff like that for back to school which might not happen. i think in general the store experience is going to change. you're seeing more appointment only more virtual appointments. you'll see more one-stop

shopping if you are going to have your kids home more, you need more food in the house, right because they're eating at home you probably need really good great pair of sneakers to run around and get home and school supplies and computers to accommodate everyone where do you get those things? you get them at target and walmart. they have the safest way if you choose, you can pick up clip and collect that you were talking about. >> stacey, are you picking winners now then are you telling me it's going to be target, walmart, big box stores that are the relative outperformers given the fact they are going to provide the construct for retail spending in the coming back to school and holiday shopping season? >> on a relative basis, walmart/target win here. they invested early in buy online, pick up in store they've done all of the right things you were just talking about best buy. you have to load up your house with technology to accommodate your children working -- you

know, being at home and you working from home. best buy is a winner they were able to keep most of their sales that past quarter by curbside pickup. that's a crazy number. those are the guys that are going to win and certainly you want to stay out of the mall and stay away from apparel >> all right so there's also a concern these days with regard to the shopping seasons as we head towards what could be a discounting time of year in the holidays inventory management is going to be key many times you mark down as a retailer prices because you have excess inventory clear space for the new inventory to come in what exactly happens to inventory managementand who does it better than anyone else? >> inventory management and supply chain needs a complete rebound. they're getting real a lot of brands are saying we're going to pack stuff away and pull it out again next year and hope the consumer -- it kind of translates this time next year the second thing is you're going

to see less offerings. brands will do less skus those are big changes happening certainly in the supply chain that are going to change the nature of retail and margins i think most important is that what i'm hearing from stores is they're terrified of getting overwhelmed with traffic so they're moving their huge discount sales online. so look for more and more discounts in the ecommerce world rather than the big, crazy rush black friday type events in the stores we're going to see less of that. >> before we let you go here, let's talk a little bit about what you expect in the holiday shopping season. it's way out there is it even fair or appropriate to forecast what it could look like given we don't know anything about back to school right now? >> yeah, we know very little macy's even told us the second wave covid brought their business down 15%. you're going to see immense volatility the other thing for gifting for holiday is by appointment only you'll see how do the retailers

with higher tickets serve 80% -- sorry, 20% of their customers that drive 80% of their business they do that by appointment and do it virtually. the guys that do that do it effectively and they win the mall is a loser particularly as they've invested in it. >> thank you the duchess of retail. coming up on the show. when bad news is good news our next guest tells us why he thinks the market has been rallying and why now might be the time to take a few chips off the table. and as a reminder, you can always watch or listen to us live on the cnbc app stay tuned you arwahie tcng "worldwide exchange" right here on cnbc

welcome back to "worldwide exchange." futures pointing to modest

losses the dow implied lower by 75 points joining me is alan boomer. chief investment officer at momentum advisers. i wonder, allen, if you look at this market and say to yourself, things have gotten a little bit extended to the up side. >> absolutely. i think the market's over bought it seems as though the market's been kind of cheering on bad news in hopes of additional stimulus if you look at the coronavirus and the cases, the cases are growing. the market's rallying. again, sometimes you get in these funny periods where the market just seems to be cheering on the bad news in hopes of more stimulus. >> what do you do? are you selling? if so, where are you selling where are you trimming are you taking it from the winners? are you trimming it from the losers what are you doing here? >> great question, dom i think right now you have to realize it's a stock picker's market so if you're long, you know, spy or the s&p 500, now's a great time to get out of that and maybe switch into some

individual stocks. i also like golds. you know, gold is one of these stores of value that, you know, i know you guys talked about earlier in the segment today and one of the big rationales for gold is the idea that, you know, historically if you look at mixed income or bonds, it's the place you go when things are crazy. the reason not to own gold is that there was no income today with bond yields being so low and expected to be low for the foreseeable future, gold now is an attractive alternative. >> isn't that what's driving stocks, alan you have negative yields in europe you have no yield basically here in the united states gold doesn't give you any money but if you buy some kind of a blue chip stock, maybe even like a microsoft you actually get a dividend payment each quarter. isn't that what's driving some of this action in stocks, this idea that there is no alternative? >> yeah. the tallest measured in the room for sure

the issue is that a lot of what's driving stocks is stimulus microsoft aside, right stimulus is really -- we pumped an unprecedented amount, over $2 trillion of stimulus into this economy, and it's really not stimulus that's going to drive the economy in the future, it's actual economic activity it's actual profit so i think it's a sugar high right now. >> all right so if it's a sugar high right now, there are -- there still have to be places where you are finding some relative value. what would you want to own what types of stocks industries? what names are you trafficking in right now to the up side? >> yeah. good question. so i like tech and i like certain types of real estate i'll give you real estate first. one stock that i really like is prologis it's a reit but it's specialized in the industrial sector and the

distribution and logistics sector if you think about everything you order online, everything you order in terms of ecommerce, it has to get to your house some way. it comes through trucks. it comes through warehouses and distribution centers this real estate is very valuable in the post-covid world. i like that. you get a 2.5% dividend yield. i think the stock is going to at least 100. there's real economic activity that backs that stock. >> what would you stay away from have 30 seconds left >> sure. i don't like the banks i don't like banks i don't like the rest of the reit so he can toectors i think the banks have a lot of exposure through commercial mortgages. >> don't like the banks, you do like certain real estate like warehouses perfect calls there from alan boomer we'll see if it actually plays out. thank you very much for joining us this morning.

>> great thanks for having me, dom. that does it for "worldwide exchange." endest losses heading to the oping bell that does it for "worldwide exchange." "squawk box" is coming up next 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. you say that customers maklet's talk data.s. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g - everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item - corner offices for everyone. just have to make more corners in this building. chad? your wireless your rules. only with xfinity mobile. now that's simple easy awesome.

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good morning futures are mixed after the dow fell nearly 400 points and the nasdaq and s&p 500 broke five-day winning streaks getting back to the classroom. president trump says he'll pressure governors to reopen schools in the fall. and a disappointing meeting. facebook's zoom summit with boycott organizers fell flat raising the prospects for prolonged boycott by advertisers. it's wednesday, july 8th, 2020 "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. as joe mentioned, u.s. equity futures are under a little bit of pressure. this comes after a big down day yesterday following the big up day on monday. yesterday the dow was down by 398 points that's a decline of 1.5% you're also seeing that the s&p was down by 1% and the nasdaq was off by about .8 of a percent. this morning the nasdaq is indicated higher it's been the technology stocks that have led the way, so often led the charge dow is indicated down by 51 points this morning. the s&p is down by 2 points. if you've been watching the treasury market, i believe the n