amazon, 3300, a new street high, the trend is your friend as they say. >> you can't forget analog devices. that is a big, big deal. there is a lot of big things going on it is quite a bit higher you see some follow along impact the broader markets, as you mentioned, also in the green been that let's bring in the cofounder and managing director of sun group good monday morning, guys. >> good morning.

>> i know that chips are not, of course, a specific coverage area this is a big deal at a very confusing time for many in the market what do you take awa from a move like this and what sorts of changes or adjustments do you see? >> it is very, very interesting. we're in the middle of a pandemic, but it dung change the fact that a lott of companies are doing deals and acquisitions there is still strength and still a lot of people making money in this market there is an area that we need to participate in, talk to our clients about actively and want to move some and shift some cash over to different areas to make sure that we also participate.

>> often when things happen like the nasdaq getting into new territory like this, this is a stock pickers market we have to look at individual opportunities. do you feel that way and if so what are you looking at? >> sorry, that is for scully >> for us it is always a stock pickers market, frankly. with that said if you look at the internet and digital media group, the president obama is still down like 1% or 2% and you have names like amazon and wick, but you still have names that you talk about all day long that are still under performing in that index and those are companies, again, like facebook, google, uber, twitter, even though they had positive returns in the 10% to 20%. we think that the fundamentals of the stories continue to

improve on the margin, and two the long-term thesis has not challenges valuations are higher but we're still below the historical range on that pe to growth ratio >> yusef, i wonder if at large, we have a lot of money sloshing around looking for homes, as the fundamental story it will make sense. what do you think about the companies and the giant themselves >>. >> this was three weeks ago. that was a price target.

this was four weeks ago. the price has now reached a few weeks. so it puts us in a situation because the long term thee his has not changed. the valuation is important as some point and it needs to be taken into account >> talk to me about the demographics you say your investors tend to be younger too often we talk about robinhood and people who don't know what they're doing gu i think that is also unfair.

what are you seeing for your investor ko horde and what does it tell you? >> i think we have what we consider younger clients i think it is very sensible. we found that many are focused on long-term goals and we want to emphasize the importance of financial planning, plotting ahead, figuring out what makes sense for your compliance. they are fielding a lot of the hurt that we're reading about but a lot of them are working from home and not with their teams. they know it will be behind them

at some point, but for many of them they're looking at opportunities, and most importantly looking at areas they feel more comfortable there are companies they use and that they're excited about holding long term. >> using the home to internet which is your area, do you expect to see more m&a might buy? there are a lot of pretty big companies that are be neat that area that will not see a lot skrooutny, and a lot of values

that is, again, for youssef. >> yeah, next week we will hear from snap and twitter and later on and to the extent that they are continued to be justified at this level, and maybe make new highs to double down we have seen m&a in one category which is the food delivery business with grub hub being taken out and uber taking post mates. we think ecommerce will see for their consolidation. i think less because it will be

really hard for facebook or for google to make any consolidation. and not only within online, you can see online, leverage, to offer what they have been offering the channel line of leadership might see summer hookups on the horizon. >> thank you for having me >> speaking of robinhood, another $300 million in funding raised let's get to kate moody. >> investors pouring in more

money. a $320 million cash injection. that is part of an extension from last year it includes tsg and ivp. it brings the total series around to 600 million in a slight boost to their valuations the company has seen record new investments open and they're seeing value there back to you guys >> fascinating, back to you guys later on this hour, don't miss california's attorney general talking about the decision to sue the trump administration, the state's reopening strategy, the rise in covid cases and mo a big show still ahead don't go away.

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we continue to watch the situation regarding covid in texas. gary johnson is director of operations at gym's restaurants. gary, i'm a huge fan of jim's, it is great to have you. >> thank you for having me >> i wonder what you make of the news of the past few days namely the governor's word on reclosing of bars, the hewitt mayor saying we might have reopened too fast too soon and what's the association doing

about it >> thank you, again, for having us on. the public is very panicked and worrie worried. i'm not sure that the situation i'm so sorry the -- >> no, i think -- there is obviously a lot to handle. you had the governor as we said talking about reclosing bars and i know now that there is an effort to draw a finer line between what is a restaurant and what is a bar, right depending on the percentage of your sales that go to alcohol. >> yes, to be considered a bar 51% come from alcohol sales. restaurants are less than 51%. they are two different entities,

but but still serve the public and we still have a responsibility to do so safely >> do you expect to see broad reversals in the reopenings that have happened so far >> i do not agree. i believe that the restaurant industry has become a scapegoat for spaking numbers. we're an easy target because we're stationary, but we are very, you know, familiar with safety and health protocols. we get inspected regular lay already by the health department i believe we need to be responsible. reclosing down. >> good morning, it is john. i remember hearing a month plus

ago that lots of voices out of texas saying we're not new york, we're not new jersey we should not have to follow xy, and z cases. this is looking like a trend that we saw in the northeast and we hope it doesn't continue to go in that direction, but was there too much complacency perhaps out of some of the areas seeing a rise now? and maybe there could have been more recautions and you would be able to stay open? >> i believe there is some complacency. there is a lot of people going to grocery stores, hardware stores, protests people are not being as conscious of what they're doing as we are inside the restaurants. i believe being in a restaurant is one of the sachest places to

be we're following protocols, we're enforcing what is put forth by the governor's office. and we're doing everything that we can to make sure our employees and guests stay safe >> how would you like to see the government, local and state messaging change >> i would like to see a mor positive light put on the restaurants and bars right now the bars are closed, but i believe there are operators out there very committed to doing things the right way and i believe that, you know, people going out and seating from restaurants are seeing the staff and being responsible and we have their best interest at heart always. >> gary, when i go back home we always go to jim's and i'm am e amazed after living in new york, how much i can get on my plate for how little money

is the bar harder to reach given the limited capacity >> there have been increases in cost, but that is secondary for us right now we had to make some adjustments. we had some supply chain issues, but for the most part we have been this all together we have worked with us, providing us with what we need and we had to skinny down our menus just to be able to not only handle supply chain issues but also short staffing issues to be able to put out a consistent product we shrunk the size of our menus. >> finally, labor willingness to come back to work. do you expect it to change when

the cares act benefits run out >> it has been a challenge to get our workforce back some people are scared they don't want to be exposed to covid or run the risk of exposing their loved ones. other people are content to collect unemployment and collect the stimulus benefit but it is getting better, our employees are slowly returning back >> our viewers are thinking about you guys gary johnson, appreciate it very much we'll talk to you again. >> thank you so much for having me

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welcome back, the state security's auditor is investigating trading on a huge scale by two former brokers merrill lynch. one victim is none other than the governor of that state >> i certainly didn't sign a document saying it's okay to steal from me. >> and that is what you're alleged happened that they flat out stole from you. >> fran benson is a man of many accomplishments. >> i stand before you today ready to serve as your next governor before becoming the 79th, he co-founded a networking company. he has an mba and teaching business one thing he is not, he says, is an expert on the market.

i know a balance sheet and cash flow i have never been a professional investor >> ben son and robert levene founded his company. >> i wanted a refrigerator and a freezer, and bob wanted more than that. >> cabletron went public in 1989 as merrill lynch as underwriter. >> the computer networking systemsmaker was named a top stock for return on investment cabletrom made it's founders rich with millions to invest so they turned to their former corporate accountant that went to work for morgan stanley and they introduced him to charles canahan. just before christmas in 2007 he got an urgent call the brokers were switching

firms. we're going to merrill lynch, i have to come see you to sign and move your accounts >> i trusted them to do it, and no i did not read a them >> what benson didn't understand is that their compensation at merrill lynch would include millions of dollars in incentives if they met commission targets it's a common practice on wall street and it's legal. but what benson alleges happened next is not legal at all for the next ten years they churned his account, trading and trading and trading without benson's approval, not to make him money, but to make them big commissions. >> they made $26 million me in fees to lose me five >> that, benson says, is a study

of his accounts based on a forensic analyst that he hired if benson simply put the money into an s&p index fund and left it to grow, he would have earned $100 million >> are you trying to put the responsibility on them for things that should have been your responsibility. >> if i wanted today trade my own account i would have done it myself i didn't need to pay $26 million to merrill lynch to do it. >> robert levine noticed the problems first >> levine files this argue trco saying his account was continuously churned but after a hearing in front of a finra arbitration panel in 2018, the firm decided to settle

with levine wouithout admitting fault. now craig benson has filed his own claim for $100 million >> if they can do it to me who has a big account and served as a governor of a state whoa el, e can they do it to? >> merrill declined to comment, this is a case that doesn't add up, a sophisticated high net worth investor that claims to be unaware of activity in their account for five years through their attorneys, both men declined to comment. canahan saying the transactions in question were done at the customer's direction merrill lynch is still paying his legal see ifs.

>> kothd, this is great reporting, first of all, and something that is a nightmare of many investors, i'm sure, but it seems in this age of data there should have been red flags in merrill lynch as well as regulators why isn't this churning of an account visible before it become becomes a huge issue in cybersecurity, it would pop up, why not in trading >> that is what is supposed to happen, john and in fact the experts that we talked to said that not just with a big high net worth account like this one, but any a account, there is supposed to be a number of eyes that are flagging the account and contacting the customer directly that apparently was not happening. >> the downside of course to a story like this is that

responsible financial advisors and investor advocates can get a bad name are there things in race to insure investors that it will not happen >> they're supposed to have these things in place. it there is supposed to be compliant measures in place. that has your interests at heart, not the brokers interest, not the firm's interest, but is flagging these kinds of things most do have this. certainly did merrill have these systems in place and were they

thwarted and what are they looking at here? >> it is a story that every investor can relate to we all play a fee of some kind on the other hand we're given a lot of documents what is that lead of what you're responsible for following up on? >> you do have a responsibility. you need to be up front with your broker about what your brokers are. so there is some responsibility for the individual investor. but the issue is where is that line where does the firm's responsibility come into play? it is not supposed to happen it is not supposed to happen, it's not legal, and the question here to be resolved and the question here for everyone is what is the investor's responsibility, what did the investor look at or not look at,

but there are supposed to be safe guards against that time of conduct. >> kothd, just a great report. thank you, with the cnbc investigates today we are close to session highs today. the dow is up almost 450 pay attention to tesla we got to 17.94 before settling back just a touch. wee ckn mont 'rba ia me some see a grilled cheese sandwich and ask, "why?" i see a new kitchen with a grill and ask, "why not?" i really need to start adding "less to cart" and "more to savings." sitting on this couch so long made me want to make some changes...starting with this couch. yeah, i need a house with a different view. and this is the bank that will help you do it all. because at u.s. bank, our people are dedicated to turning your new inspiration into your next pursuit.

welcome back, everyone i'm sue herera here is your cnbc news update at this hour. refusing the state republican convention to hold inperson events the events could not be held safely with hospitals running low on available icu beds. confusion in spain over new

pandemic restrictions. the new lockdowns ordered in eight towns, but a judge suspended that order to say the government has exceeded it's powers the leaders calling on citizens to ignore the judge and abide by the lock down. and in poland, a conservative prth has nearly won reelection you are up to date, that is the news update this hour. i'll send it back to you >> all right, sue, thank you after the break, california attorney general suing the trump administration on the student visa rules he joins us right after the break. stay with us

the attorney general of california joins us this morning. mr. attorney general, good to see you again. >> thank you for having me >> the response to this rule has been pretty swift. we had harvard at mit filing suit why you and some of the colleges in california? >> remember that california graduates more students from college than any other state in the nation the very late flip-flop by the administration will hard nom only the international students but the universities, the

schools, the students that might be forced to attend personally it is just not a wise thing to do and at this stage it is quite reckless >> when you try to read the calculus for why they made the decision, do you believe their truly pressuring schools to open physically or do you think they were looking to go back to a day thinking about making sure that international students were not gaming the system? >> it can't be the latter and i can't understand the form er it was the trump administration itself that set the rules allowing the international students to partake in the online courses so why the sudden flip-flop.

this latest move has no explanation. you can't do that at the same time as a government you don't have the rights to do that people have rights once you take action as a government so that is why why you see the different states ready to sue. >> the trump administration is also you shalling public schools to fully reopen and i wonder if that has your eye as well? >> my real concerns. we're finding that kids are not as susceptible to contracting covid-19 or they're able to survive it better, but you and i know those kids start to interact with their parents, grandparents, and others it makes no sense. everyone wants to get back to where we were before but we have to do it the right way

for a president that waited five months before wearing a mask, you can see what happens it is not only harmful but dangerous for a lot of folks >> the schools, many of them, universities and public schools as well they have to start in just a few weeks so legal proceedings can take time what is your expectation of where we go from here and what the impact is going to be on students, teachers, and professors >> you're right if we were to simply wait and let this lawsuit run this course it would take time we're going to see a temporary injunction from being able to enforce any of the latest guidance they're offering. if we're able to get the court to agree with us that not only would there be harm, but it would be against the law and the way it shows it is against the law, we're hoping we can put a hold on any action in this regard by the administration

and so that way what we can do is not only offer people some certainly, whether or not you're a business or an institution, you knee predictability. all of a sudden a flip-flop. three months later, say no, forget that guidance, we're not going to say if you're an international student you cannot be in america unless you attend poernlly it just doesn't make sense we're going to try to give people that predictability and calm things down >> just a question about reopening schools in general not international students the president threatened to withhold funding from schools that don't hope.

how much money would we will talking about and would we see similar laws if that takes place. >> before go too far on that one. they were battling for a congress that was signed by the president and now they have the authority to use that money. it's not up to donald trump to decide how a school or school district allocates it. i watch what trump does. talking about what a commander and chief can do in the white house. >> well to that extentt it sounds like you're saying openings, relowtures.

>> it could be, but it won't be because the actions or decisions made by school districts and superintendents of schools, won't be based on what trump says the facts on the grounding if they're going to open or not their schools. each of the district supervis s supervisors, will make some of those calls. but the president and the trump at mid strain can't undo what they have already done in approving resources to these cities they have to have a basis for congressmen deering. i'm waiting for republicans and conservatives to be jumping up in arms saying how dare

washington dc take over local control of an issue and tell us what to do so what we'll see is that the best decisions will be made about schools and reopenings by the part-time on the ground thinking about their education and their safety >> i wonder even more broadly if there are other blind spots that you're turning your attention to that might drop up again in the future doesn't necessarily have to do with schools and education are there things that have come to the surface. >> i have seen the law protecting people's privacy. we're now as of july first given

the investigation to protect this if it is your health information. people doing contact tracing and all of these other things, and more important that you control your privacy data about your health who knows what it will be whether or not you contracted covid-19 and survived. we're going to make sure that people's privacy in california is enforced. and we're going to work with companies that collect that data from individuals or online so they know what the new rules are. so they can handle the private information. they can sell it, keep it, use it, and we're going to try to make sure we bring the kcapital back to privacy. >> there is an acronym called fcat, dates with a surge in cases, and i heard that california doesn't get as much

scrutiny as the other states do you agree that california has more to answer for when it cops to the rise in case load >> i think from governor newsome on down, we're prepared to answer to questions. but we have been at it, trying to address this. let's put it this way. compare us, the saying, don't compare me to the almighty. compare me to the lternative we have a large number of cases. compared to our size given all of the other states, even big florida, we still are seeing a fewer number of cases per capita and so i think that you're going to find that california will be at the lead each time trying to do whatever it can

we get it we can't go back to having an economy that creates more jobs than any other state that has led california to be the fifth largest economy in the entire world not just the country, but the entire world we can't get there, we can't provide that good education for our kids or give people a sense of going to work and feeling comfortable until we take care of this. we want to tackle this and do what we can. californians have some work to do >> california's attorney general, thanks as time. >> thanks, fellas. appreciate it. >> let's get a check of where we stand in today's trade the dow up about 400 points that translates into 1.5% the nasdaq, almost 2%, we're back in a moment ♪ ♪

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a massive deal in the semi conductor space today. one of the biggest deals of the year if not the biggest. as we're getting close to that june 8th closing high. getting interesting. back in a minute introducing stocks by the slice from fidelity.

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let's get to julia taking a look at theater stocks under pressure julia. >> that's right. movie theaters stocks trading lower today. imax down the most off nearly 6% this after mkm analyst issued a note saying he thinks movie theaters won't open in meaningful numbers until september. the movie that was scheduled to be the first big tent pull will likely be delayed again. imax, which is down 5.25% has out performed the other movie theater stocks it's up about 10% in the past three months it's being hit harder than amc which is down about 2% today this after it said it has approval for a deal to reduce its meaningful significant debt load back over to you >> thank you facebook continuing to face a wave after wave of scrutiny as

the company remains under the microscope our nec guest saying that ceo mark zuckerberg, cannot hold onto such enormous power and avoid responsibility when things get tough, unquote what's that add up to. >> it adds up to wall street doesn't care as long as they are the only game in advertising they are very good in that regard there's not a lot of choice. most of the other competitors are small. there's no competitive marketplace for social nemedia. they own it. wall street is rewarding, which is what wall street should do. >> what's the practical imfact if facebook does decide to

forego political advertising however that is defined. >> it's a lot of small candidates that need to use facebook there's a lot of people whose voices will be squelched it needs to be much more sophisticated. google did something more sophisticated. twitter cut off political advertising. it wasn't a big deal many the case of facebook, it is a big deal it might not be a big moneyma r moneymaker, but it will have an impact they should have a policy that's nuanced and difficult. the political content is really the problem whether they conspiracy theories or whatever the topic is it runs ramp ant over at facebook

people pretending to be other things or news that isn't correct. that's where a lot of the impact comes from i would love to see an incredibly, smart, sophisticated strategy instead of cutting everybody off. >> for as long as i've known and followed mark zuckerberg maybe known is going too far i did interview him a few times early on he's been a digital libertarian. he wanted to operate on this idea there's a market in information and then the best ideas eventually win out and facebook will be place where every one can participate in that market around the world for the first time and it will all work out what's happened to that digital libertarian ideology, i think? >> i think he just changes it. it's not just mark he tries hard to learn about things he does. i think it's libertarian lite. it's a pick and choose it's like when people have

religious tenents and they pick and choose what works for them they were never going to take off alex jones and then they were they were never going to deal with political advertising and then they are going to deal with political advertising. i would better say this is an e vo vol ving situation my issue is this arbitor of the truth thing. you don't want to be the arbitor of the truth, why did you build a system that requires an arbitor of the truth someone has to figure this out whether you have this board, which i think will never meet. that's way too slow in the process. they have such an impact a hands off approach doesn't work with this system.

they seem to think it's simple it's complex it's just where we are >> we talked a lot about what it means for facebook and why wall street doesn't seem to care much we don't talk about the opportunity that you would think it creates for competitors and whether or not they can capitalize on it >> i don't think any of them can catch them i think twitter will do much more so in this area the penny that dropped this can't be let alone. the metaphor i used, people keep trying to come up with different once and the one i used in the column is a meat seller. some are the meats are bad some are good but you eat them you might vomit and die be you get the chance to understand

these lies i think the problem is and i argue a lot with people is this is so big and so amplified and so weaponized, it's not able to be -- you can't compare it to any other medium not television, not newspapers, not magazine, even direct mail you can't. there's no choice but facebook we have to deal with facebook and it will be really nice if they understood their power and they understood the nuance of what they have to do here. whatever they do affects like, we're going to cut off political advertising. they will hurt small candidates that need the ability to use facebook i don't know if there is a solution, honestly >> when get the testimonies of these tech ceos, are you expecting the narrative to change into a new which parter or no? >> who knows

i think he's got a lot of cover there and he's got the other ceos every one will be looking at bezos and tim cook will be off this the problem with these hearings and i really appreciate david doing these. all of them together means we're getting a lot less scrutiny. a lot of people think they should have one each day each of them has a different issue we have to contend with. amazon is about the marketplace. apple is about the app store facebook is about the impact of hate speech and enormous power they are very different issues and so i don't expect anything to happen during these hearings. i appreciate that he's doing them and i hope for the best maybe we'll have one of those moments. it's going to be hard because it probably will be remote. you don't have the pageantry of doing this i don't expect a lot what i would like just legislation.

>> we'll see great to have you. >> thanks a lot. >> carl, as we head toward noon, can't help but notice apple up more than 3.5% knocking on the door of 400. >> yeah. let's get to the headquarters. bryan sullivan today in the half all right. thank you very much. hi, everybody. welcome to the halftime report as you can see and as they just told you the market rally continues to roll on you've got the dow up 1.5% more than 400 points the nasdaq up 1.75% hitting all time records this technology juggernaut , rebound rally, whatever you want to call it will not stop i'm in