>> finance comes doing well. you'll have a lot to talk about. jpmorgan and others later to come this week dow off the high. >> underperformance of big cap technology continues and that's something to watch into the close, ty. good to be with you. >> likewise. >> "closing bell" starts now. >> welcome to "closing bell. i'm wilfred frost with sara eisen. dow set for its fourth day of gains in a row let's look what's driving action first vaccine showing promise raising hopes for a faster reopening. travel stocks, retailers, banks all rallying banks, by the way, we saw goldman sachs blowout reports trading numbers and the sector is moving higher big tech was showing signs of fatigue. nasdaq has rallied sharply since around lunch time.

facebook, netflix all turning positive we are up 3/4% -- sorry, 2/3% on s&p. >> another higher day, certainly off session highs. coming up on today's show. great lineup uper facing fresh lawsuit from massachusetts over how it which was its drivers. early investor bradley tusk has an idea that can help them avoid headaches and take on rival lyft he's going to join us to explain. speaking of the pandemic, new jersey governor phil murphy will join us to discuss his states path forward, whether he's prepared for what the fall will bring in the northeast. let's focus on two key stories meg tirrell with moderna's vaccine news and big bank earnings certainly better with goldman sachs. meg, start us off with moderna. >> hey, sara the full phase one trial results from the covid vaccine published

last night in the new england journal of medicine. this was 45 in the trial we got a glimpse of 8 out of 45 on important key data. these were healthy adults who received two vaccines a month apart. everyone generated antibody, the important ones that actually block the virus. at the dose level they are taking into the phase three trial they saw levels of neutralizing antibodies were two to four times higher than patients who recovered from covid-19 the hope is that will be protective they did observe side effects particularly after the second shot with this vaccine things like fatigue, headache, muscle pain, fever in some patients those are going to be things we have to watch closely in the larger studies moderna is on track to start that 30,000 participant phase three trial july 27th. pfizer also saying starting

phase three later this month astrozeneca on its heels moderna stock is up, astrozeneca is up almost as much on report their phase one data is going to be published soon. we saw from reuters in the journal of lancet on monday there's errors the data is positive the company not telling us and we're going to have to wait to see the data when they are in the lancet guys. >> very exciting hope they can come through meg, ken frasier of merck in the vaccine game, weren't on the list, i guess further behind, has been cautious on the time line and telling people not to get too excited. is he going at it in a different way, a different method? what do you make of his comments . >> with harvard business school he called the time line of

getting a vaccine by the end of the year a grave disservice. he said we just have to be really careful making sure we really understand science and everything about these vaccines before deploying them broadly. we actually asked moderna's chief medical officer about that and he said he thinks they are doing it in the most ethical way possible, being careful while moving as quickly as they can. we know merck has two vaccines itself it's advancing for covid-19 they haven't put the time lines out there the same way these other companies have we know they are priorities among the trump administration and operation warp speed. >> meg, thank you. want to highlight a few koefd related data points from the beige book in the last hour. the headline that stood out to me was on jobs contacts in nearly every district noted difficulty bringing back workers because of health and safety concerns, child care needs and generous unemployment benefits. many contacts who have been

retaining workers from help from ppp says going forward the strength of demand would have layoffs. that's broad regional data including in norse realize closings were down more than 50 from a year earlier and new contract signs down roughly 75%. also noteworthy many retail tenants on commercial real estate still behind on rent but real estate contacts said they remained optimistic in the long-term. then out of chicago, they mentioned some strength in home improvement, food and beverage and sporting good sectors and vehicle sales as well increased sharply. apparel was selling but only with very big promotions a snapshot of what's working in the consumer kansas city all meat packing plants were said to be operational but supply chain issues related to covid were still impending some functions

fred, overall a signal things were better than the month before in the snapshot of the data leading into july but still pervasive from real estate to consumer to employment on covid and on the uncertainty always a room good up to date color piece on what's going on across the districts in the country. >> the real estate closings in new york as well particularly fascinating given how strong a rebound in last two months in pending home sales it's a clearly regional factor you can understand that given people escaping the major cities it will be interesting to see whether that does rebound in due course or not or whether expensive higher tax places that don't benefit from people escaping and seeing what nonurban living has been like in recent months. whether they bounce back or continue to suffer. >> and interestingly, i pulled out the new york city snapshot because it was so weak there was mention of strength outside of new york city in suburban places and traditional

vacation places, upstate new york as we've heard anecdotally people have flocked up there to get out to bigger spaces with a yard outside of the city and public transportation. want to also mention the banks goldman sachs with results blue pass estimates, the stock is well off its highs, wilfred. what's driving it? >> smashed the analyst top and people line estimates goldman sachs did for the quarter. the most pronounced part trading, fixing concurrences and commodities. that was $4.2 billion up 250% year over year jpmorgan yesterday was up 120%, citi up 70%. nearly $3 billion inequities trading revenue up 46%, also very strong and better than jpmorgan and cities in terms of year over year gains banking revenue $2.7, up 36%, also very strong the question, of course, now is whether all this can be repeated in the second half of the year

here is ceo david solomon on that topic as it relates to capital markets. >> i don't have a crystal ball as to what's going to happen in the next six months. i've had discussions with people where people talk about some capital markets activity being pulled forward there's no question that some refinancing has been pulled forward. at the same point there's been a whole bunch of activity we could never imagine would have occurred because of the virus and the economic consequences of the shutdown so when you look at industries like airlines and cruise and travel and leisure, there's been an enormous amount of capital markets activity that was completely unanticipated. >> investment banks usb numbers strong, beats on both lines and they had less of an increase in provisions that had been forecast pnc less positive on the provisions front but nonetheless the stock higher while usb and pnc.

that will be next week as they report wells with yesterday's losses. positive vaccine news no doubt moving the sector as it has all cyclicals. despite that all bank ceos have been referencing enormous uncertainty over the economic outlook and reliance on government stimulus. that is a question about how sustainable this bounce in bank stocks is today. nonetheless they are up and tomorrow we'll hear from morgan stanley and bank of america, sara. >> that is the big question. that is fiscal stimulus in a way. they have seen this artificial boost in terms of client accounts and direct deposits, the bankers have, that is, from their customers because the government stimulus has been plentiful, extra $600 on unemployment benefits per week, ppe funding keeping people on payrolls the question is, is demand going

to come back enough for jobs and in the economy to get that going when the stimulus effects wear off. to me that seems like biggest uncertainties and common thread when they hear from bankers why they are not going for v-shaped recovery theme even if not pervasive weakness they are preparing for it because a lot has been restored artificially because of the unemployment benefits. >> absolutely. none of them are confident in what they can predict about the second half or next 18 months. all of them say we're confident we provided enough for bad loans if our base case plays out but less confidence than ever before that their base case will be the reality. the other oddity i bring up, the only bank with widespread beats in almost all of its segments with no caveats, no off sets to the positivity is goldman sachs. goldman sachs is the worst performer of the banks today it is up only 1% wells fargo, which was unquestionably the worst

performer of the group is up 4.4% today it was down more yesterday it's kind of strange that when you look at the performance today. similarly yesterday we were getting a cyclical bounce in other sectors but banks didn't perform. we're a little all over the place. part of that does come down to where we were coming into this week banks have been terrible performers even if you're having a less positive outlook from the ceos in terms of macro picture, you're coming off a low base and that's certainly a factor. >> a bit afrotation theme in broader market technology is not doing as well, for instance, as industrials and materials, so value is working that tends to be the group that had been lagging is picking up some steam today maybe that's going on within the banks a little bit as well we'll hit it all into the close, industrials, financials, material in the market after the break, investor bradley tusk said they could

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a fight is between massachusetts ride share companies and lyft the state filing a lawsuit against the two companies claiming they are misclassifying drivers as independent contractors instead of actual employees. the second state to challenge the classification of uber and lyft drivers this year california, remember, filed the first lawsuit against the two companies in may our next guest says instead of repeating history and engaging in a fight they should be ruthlessly woke and engage the reclassification of workers. joining us bradley turvsk he was an investor and partner with uber. just for clarification, you're not in the stock or in the company anymore, correct >> no. i've been out of it since the end of last year

>> so let's talk about what you're proposing here. you want them to classify as workers. why would a company that already struggles with profitability go to such a major cost that would only drag on the loss in order to make these workers fulltime >> right so i know it seems a little crazy but if you look at ride sharing right now, it's not a profitable business for either company. they are cost sharing, price war subsidizing drivers and it's not working for everyone the reason that happens as in contractors drivers are allowed to drive for anyone they want. every single driver is on the uber and lyft platforms. let's say they drivers were reclassified as fulltime employees, then they have to pick you can't be an employee for one company and work for the competitor because uber is much bigger than

lyft and offers driver more opportunities uber can say to its drivers, look, us or them. more drivers uber, lyft's wait times go up, customers start to leave because they don't want to wait they defect to uber. drivers start defecting from lyft because they don't have as many fares and it builds on top of itself to the point lyft's business can't survive short-term it would cost uber more money but long-term it's the only way to take lyft out of the game and truly be profitable. >> isn't that the whole thing, the whole way they were going to achieve profitability and make this work was to not have employees as employees but as contractors because of the costs associated with benefits and wages and everything else? what would that do to the economics of all this. >> it would certainly increase their cost short-term, increase them by 20%. the original promise of uber hasn't been realize.

they are supposed to be dominating ride sharing in china right now. uber was supposed to be having flying cars and autonomous vehicles, cargo trucks that really exist, so sticking to the promise what the company wanted to be in 2013 or 2015 doesn't make sense because the company has been struggling for aling time now if it wants its core business to be profitable, ride sharing mainly in the united states, it's got to find a way to dance itself from the competition. yeah, that will mean initially that it costs more money if you have to give drivers benefits and other things like that but long-term if they stay on your platform and leave lift, you no longer have to be worried about being in a price war with lyft and you can become more profitable. >> what about the very long-term bradley, two thoughts come to mind one, would you face antitrust issues if they did become the only game in town? what about the ultimate dream of autonomous vehicles if they have

a fully larged workforce, perhaps unionized workforce, would they face hurdles getting rid of those employees to move to autonomous cars >> yeah, it's a good question. so in terms of the first one, i think if uber tried to buy lyft you would run into antitrust issues i think in the past that's why uber did not buy lyft. however, if lyfters can't compete and ultimately don't have enough riders and drivers to support the platform that's not uber's problem an no regulation to stop that from happening. in terms of autonomous cars, it's definitely the vision -- a lot of it depends who you talk to people say we're at level four, almost at level five, it's coming right around the corner, get ready. other people in the industry that say we're at least 10 years away so it kind of depends on what you believe. if uber believes they can roll out a fleet of autonomous vehicles in the next between years and regulatory approval to

do that, because it's not just the technology but having the government on the board with it, yeah, they wouldn't want to be this but if you had to bet, it's more like 2030, not 2022. >> you also put in your piece a little anecdote but meeting trfs, that's where you get ruthless out of ruthless woke. he's focused on turning around the culture and ultimately achieving profitability. is it working? >> it's not. across the board a really nice man. when he came into the company, take down the temperature, uber is being too controversial, let's calm things down the problem is it's been calmed down on everything yes, the workplace culture may be a little better but at the same time you don't really see that kind of innovation anymore that you saw when travis was ceo, counter-intuitive thinking,

hey, what if we embrace worker classification instead of routinely fighting against it. you don't see that it's a traditional wall street play, may be a good acquisition, probably is, but not particularly creative thinking, just standard. yeah, in the piece i said that's why being ruthlessly woke is better than the status quo so right now it's ruthlessly conventional. >> the uber dream in 2015 hasn't played out yet what percentage chance do you put on uber going bust >> i think it's going to be a while before they go bust. they have $9 billion in cash on the balance sheet. so i think that's not really happening any time soon. but if you want to a lock-term look, wilfred, like you said, if ride sharing isn't profitable, it's hard to understand how uber

is profitable. at a certain point if they can't make money, shouldn't be in business lyft said we won't give assurances we will ever be profitable that's crazy to invest in a stock if you never think the company is going to make money there is this notion of growth is important and you can subsidize growth losses for a while. at a certain point have you to make money if you keep going the way they are, that's not going to happen. >> brad, thank you so much for joining us. >> thank you for having me. >> we have 38 minutes of the session, off the session highs, dow up 141, high of the session was up 430 after the break, advertising titan sir martin sorrel will join us to discuss shifts in the industry due to thpaems e ndic plus his thoughts on facebook and apple boycott. his thoughts, back in a couple - [announcer] if you've tried college but never finished,

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covid-19 to social justice boycotts, advertising budgets are slashed and shifted. sir martin sorrell led the conglomerate but now on digital ads with two--year-old firm. includes netflix, google, merck and coca-cola. the firm announcing today it plans to raise up to 100 million pounds, 6% of existing share capital to accelerate its merger and growth strategy. sir martin joins us in cnbc interview. sir martin, good to see you. good evening in england. >> beginning, wilfred. good to be with you and sara. >> we just said briefly the share price has been on a tear, not what you would expect for something so linked to the economy as most advertisers have been how do you manage to achieve that >> well, we manage to achieve it there's 2,600 people at s4 in 30

countries. started 21 months ago from ground zero, from a sheet of paper. we've built it off three things, first party data, will, content and we have four key principles. purely digital because that's where the growth is. that holy trinity of beta and content programprogrammatic. tag line, go to market, faster, understanding ecosystem, six big platforms, hardware and softer and cheaper, not ignoring innovation and branding but certainly efficiency then lastly, and most importantly, going back to your comment about conglomerates and ad holding companies a p&l structure. we made considerable progress. as you say we did an equity raise of market cap is about 1.6

billion pounds crossing $2 billion. we rank already and well into the top 200 companies here on the ftse 350, so about 180 is our position post the fraiz. fundraise. that's a good thing, not compared by the market to the ad holding companies, over that two-year period dropped in value by 40 to 50% we're more compared to the tech platforms, obviously comparing a peanut with an elephant. putting that one thing aside, we're very much tagged as being part of the tech sector and that's what we continue to want to be, to be seen as more tech led. our ambition is to build a tech-led new era, new age advertising marketing services model which basically disrupts

and intermediatiates traditional ad holding companies more akin to accent you're than wpv which i still retain my personal interest. >> sir martin, we'll get to the boycott question with facebook but just considering the covid impact, the assumption is advertising spend is down. but for the tech platforms, is it still up because of structural shifts in the industry >> it's flat this year last year media spend, the market $600 billion, this year about $500 billion overall the digital part of the business is now one-half because digital this year will be flat our own growth, as you know from our trading this afternoon in conjunction with the placing, our own like for like is up 12%. so through covid and the first

12 months -- five months of the year we're up 12%. on pro forma up 14%. so our growth has continued. that is even greater than that flat level of digital. we saw in the first quarter results of google and facebook and amazon, amazon actually was very strong growth i think jeff bezos and his colleagues invested the super profit there, like $4 billion in covid-19, ppe type equipment and methods in 175,000 more employees to help build their model. even google and facebook actually had relatively good first quarters i think they will be more affected in q2 affected by enterprises which people forget is 60% -- we don't know, about 60% of their total ad revenue. google, facebook, and amazon,

don't forget, are the engines of small business getting onto things like the boycott, you have to be careful what you wish for. by damaging the prospects, restricting their prospects, you hit small enterprises and you hit jobs the key issue is going to be jobs as we go through c-19 crisis and therefore giving an environment certainly in digital advertising the reason why digital is flat and smbs continue to increase their spending on digital and even large enterprises do is it's cheaper and more -- network tv tends to be more fixed with up front in decline and probably nixed by what's happening with c19. tv free to air has come under pressure not just streamers but lack of flexibility on advertising and of course absolute cost. >> you sounded a little caution.

i believe you've been on the record, sir martin, saying you don't necessarily agree with the idea of boycotting facebook to force change why is that? what do you think the upslot of this is going to be? >> i think it's best to do this in a direct conversation with facebook i think to be fair to facebook, they have hired over the last few years something like 35,000 employees the last time i checked. i think it may well be more to monitor editorial content. they have tightened their algorithms they have done something about the facebook groups, the extreme groups so they had responded i think it's unfair to suggest they haven't responded i think a lot of advertisers are doing this out of genuine concern obviously about their recent events around black lives matters and around george floyd and the senseless murder of him

in america and the other events in america it has caused genuine concern and there has been a shift in consumer opinion but in order to get it done, i'm not sure there is the necessity. if i go back to what happened with youtube in 2000, over issues around safety, privacy, interference in elections, similar sort of thing happened google did modify its approach and did change i think facebook is in the process of change. as i pointed out before, you have to be careful what you wish for. just like jack says alibaba and tencent in china and jobs for entrepreneurs and the economy, google, facebook, amazon, the three western engines, with tencent, alibaba and facebook

generating marketing cheaply, flexibly with lockdown google has become more effective from a performance point of view. television also has become more effective in terms of cost because of that lack of flexibility and absolute cost of tv, it has been less prominent when you say the budgets have fallen, that is true less so with tech crimes about half of our client base, more with cpg and autos no the so much with health care but certainly offline retail but at the same time there has been a switch to digital because it's cheaper and more effective. >> sir martin sorrell, good to see you. thanks for joining us. >> thank you sara, good to see you again. still ahead the coronavirus pandemic rocked retail industry sending many names into

bankruptcy and derailing rhythms investors and executives rely on we'll discuss that with co-ceo walter robb in the show. a check on bonds with you. -year-old is higher but not as high as you think with persistent rally and vaccine and v-shaped hope. ten-year treasury up slightly .63. a bit of selling of bonds. we'll be right back.

welcome back dow up 229 points. virus tracker for you, a few headlines making news today. alabama's governor announcing a statewide mask mandate as coronavirus cases continue to climb there. alabama reported 47 deaths yesterday. it was a single day record for that state we are seeing cases continue to rise in the hot spots. california adding more than 12,000 cases in just one day reporting 161 deaths yesterday texas reporting more than 9,000 cases in one day yesterday 86 deaths. florida also adding more than 9,000 cases, which is off the peak that we saw over the weekend, 132 deaths in that state. more retailers have begunman dating masks inside businesses as well. walmart just announcing a mask policy this afternoon joining best buy which announced one yesterday. starbucks mask mandate also takes effect today joining

costco, national retail federation, lobbying group, wilfred is urging all retailers to mandate masks if you're in the going to get a federal mask mandate in country and piecemeal by state the businesses are stepping up here like retailers which attract so many essential ones at this time to do so. >> it would be interesting if we saw a national mask mandate whether that would lead the stock market to jump or not. i doubt we'll get to that stage. s&p gaining again, up a full percent now. time for cnbc update sue herera has it for us hi, sue. >> here is what's happening this hour new numbers from texas new infections jumping once again. the state confirming nearly 10,800 cases that is a new record governor greg abbott is not ruling out another lockdown but says the virus would continue to spread even if the state shut down for two weeks he's urging texans to abide by the order to wear face coverings in public. jcpenney cutting another 1,000

jobs the bank retailer is closing 150 stores in the first phase of its restructuring. a new year's tradition won't happen, the rose parade has been canceled organizers say they put off the decision until they were certain safety precautions would make it impossible to succeed. it takes thousands of volunteers for floats and social distancing would not be possible. since it started in 1881 it has only been canceled three times, all during world war ii. the roads bowl football game so far still on the calendar. you're up to date. that's the news at this hour i'll send it back to you guys, sara and wilf. >> thanks. cybersecurity crowd strike doubled this year's investment safety remote work employees speak with the company ceo about that trend and how bad actors trying to use pandemic fears to their advantage. [squeaky shopping cart]

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nineteen minutes left of trade, we're strong across the board. s&p up .9 of 1%. dow up 216 points kind of right in the middle of a range of where it's been all day and nasdaq also tracking higher by about half a percent the russell 2000 is surging. it's up 3 3/4%, really have a big comeback today, more rotation into laggards like small caps, industrials, materials, banks, those are the groups leading today some check on individual -- a check on individual market movers for you right now, haynes bran -- hanes brands best performer

who sees it taking share from victoria's secret, walmart and target both of which stayed open analyst says that's about one-fourth of all sales. hanes up 15% gap rallying up 9% on upgrade from rbc saying the company will benefit from secular tail we understand and decrease in fixed cost after the pandemic and, of course, kanye west, biggest secular tail wind. the ceo of melon warned of downside risks due to struggling economy and lower interest rates. wiza wilfred. >> joining us josh brown, welcome to the show. good afternoon to you and what are you going for? what last chance trade >> hey, will, hey, sarah i want to talk about d.r. horton broadly speaking i like all the home builders as a sector, itb, home builder index up 44% over

the last three months on an absolute tear. one of the few cyclical part of the stock market that's been working. with good reason we are underhoused in the united states we do not have enough single family homes to even come de los satiating the demand that's not going away. i don't think there's a season this year. i think homes will be snapped up repeatedly as soon as they come on the market. new homes, the type that d.r. horton builds should do exceptionally well up 16% in may. i expect good numbers in june as well as july this trend is continuing a breakout happening, $61 a share, the stock is trading pennies before prior resistance at $62 i think it will get through. it's a 12 multiple looks like they will grow at least 10% this year, 1% dividend, not bad, not great i like this name on the trigger of the breakout. my stop could go in at 50,

that's where the market tells me i was wrong. >> they build new homes. i guess no one builds old homes, do they, josh? >> we call them new home sales versus existing home sales they don't build existing homes, that is true. >> with fundamental and technical case for the stock, josh, stay with us, if you would. after the break, you're going to talk travel stocks, big move higher on the vaccine play are we on the verge of tech cold war? we'll cover those stories and more inside the market zone with josh brown next. as a reminder, watch or listen live on the go on the cnbc app "closing bell" will be right back with 15 minutes left to trade. biguity. this moment calls for more. and northern trust delivers more. with specialized expertise. proven strategies rooted in data and analytics... and insights borne from over 130 years of successfully navigating economic turbulence. giving you new clarity.

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stocks off best levels of the day but rallying on positive vaccine news from moderna. dow on track for fourth straight day of gains s&p 500, josh, is on track to close positive year-to-date, which means we would really close here at a new post pandemic high. are you feeling the optimism off the positive vaccine trial results from moderna, particularly boosting stocks like travel and airline? >> well, i really want that vaccine to work, and i want all of the vaccines that look like they are close i would like them all to work because i don't think moderna can supply the whole world i'm extremely optimistic about the science. unfortunately even if everything works out well with the trials, and we find ourselves in january of 2021 with widespread availability of multiple vaccines that people feel comfortable taking, that's still six months from now. a lot of economic damage can

take place i genuinely don't believe we're getting our real economy back until well in excess of when there's an available vaccine i'm looking at today's mean reversion trades and united airlines up 12%, regional banks up 5%. it's fine. i don't have a problem with it i'll just mention, though, because people have short memories, we already saw this episode. it happened from the middle of play to middle of june, lasted 3 1/2 weeks, had massive resurgence from quote, unquote, real economy, then those stocks got kicked again very, very harshly, and all work from anywhere stocks made a comeback. that is still a potentiality, so i try not to get too excited on days like that that the whole economy is coming back because i know it's not. >> with the s&p flat now where it is to date, does it make sense to rally like we are on days where there's positive news on a vaccine or should we only really start to rally when we

actually physically have the vaccine and it's being administered to people >> well, wilf, i think basically the market rallied on any good news looking at optimism where it can find it i don't think we'll be out of the woods until we have a vaccine as josh said i think that investors today basically took some money out of the high-flying tech stops and solved the moves in the travel stocks and decided, okay, let's trade over there it's not based on fundamentals, just based on momentum i do think you'll see these stocks go down again as you start to see more reclosings, you start to see almost a second wave of the virus that's starting to happen and economic damage begins to really have impact on our economy. it's happening anyway but investors have basically chosen to focus on optimistic today being more of the same. >> let's pivot to travel stocks staging a big rally on new vaccine hopes. seema has the details for us.

>> wilfred encouraging data sending travel stocks higher, going back to the bond market raising $1.25 billion at an interest rate above 10%, higher than most investment companies but priced lower than its previous bond deal in april. hotel, online also participating in today's rebound i would also note most analysts remain cautious on today's move. suntrust analyst patrick sholes says until a vaccine is widely disseminated travel will remain under incredible pressure. sara and wilf, it's a reminder while a vaccine would be a game changer for the travel industry, there are important questions about access and distribution. >> seema, thanks so much for that josh brown, are there any of these subcompanies or subsectors within that value pack you're attracted to at the moment >> none of the travel stocks if i want to make a bet that

we're like a few weeks away from vaccine availability, and i still think there's value because stocks have run substantially into it, i would be more likely to look at things like expedia, where you get the exposure to travel but you're not saddled with all the debt, like a carnival, for example, or some of the hotel chains they are doing the right things, by the way i'm looking at all the companies raising money. they are doing what they have to do to make it there. it's not their fault, right? i'm not being critical i don't want that risk personally i don't feel like the upside is worth it versus just getting travel exposure in another way to answer your question directly look, i'm booking a trip right now for the end of august to make my kids away before they don't go back to school this fall the guy told me don't book more than flee nights i'm like, why, you must be really busy. he said, you don't understand, we're not letting maids into your room. i don't think you want to sleep on the same sheets for more than

three nights i don't think you want to have to launder your own towels this is like a five star resort. if that's the situation, the idea that these travel stocks are discounting any kind of recovery -- i think it's unwarranted, too soon, and you'll have ample opportunities to look at casinos, cruises, airlines you'll have time this is not getting better in the next quarter or two. it just isn't. >> did you book a plane ticket along with hotel reservation >> no. no, no, no new england, driving i'm not flying. >> yeah, like so many. let's talk about u.s.-china tensions they continue to simmer here, spreading to other parts of the world now. we saw uk announcing huawei from 5g deutsche bank brewing war with tech u.s. and china will cost

the sector $3.5 trillion over the next five years. the firm creating tech cold war index looking at stocks that tend to move lower when tensions with china rise. some of the names in there, zillow, palo alto networks and intel. they found stocks that react positively to heightened tensions include t-mobile and emphasis eugene, any of these names or theme resonate with you and sort of signal a way you should be investing given what we're here seems p to be a long-term issue? >> sara, i look at this issue the same way i look at all the china-u.s. trade war issues. it's the current market. semiconductor markets will do well this analysis notwithstanding. i think what deutsche bank is pointing out here is as u.s. and china's tensions continue and this really started in 2016, it's really a proxy on trump

administration policies toward china as much as it is concerns around sort of security risks. i think some of that is more attempt to get a leg up in the technology wars. i do think that this would dissipate in much the same way that the bill passed last night gave the president powers to enact sanctions against china and today came out and said he would walk that back a little bit. because we have an election coming up, i don't think we want to see this tension continue so strongly a lot of it may change anyway depending on what happens in the outcome of the election. do i think that as long as china controls the splupply chain you might be talking about 10 years before impact on the initial disruption that being the case, the study suggests that software and semiconductors is sort of a defensive way to play at concern

about u.s.-china issues in the technology sector. >> s&p 500, by the way, is up 0.9% beyond meat one of the big winners of the sessions. aditi roy has details for us. >> beyond meat, shares went up 6% on news the company is entering brazil. beyond says it will sell at 19 st. marche in sao paulo. they have 60 million potential customers. the stock on pace for its fourth straight down week, though, after analysts notes raised concerns about food service channel. still beyond is up 80% the last three months back to you guys. >> aditi, thanks very much for that i want to pivot back to the broader markets, josh, as we

approach the close nasdaq 100 just gone green again but it was lower do you start to get concerned when you see big cap stocks led us higher for so long underperforming? >> i don't on the days they quote, unquote, underperform, that means something else is outperforming. let's take a look at xlb here is the material sector. it's tiny. it doesn't matter for the direction of the s&p 500 in the way that it once did but the companies that are represented in that index, they are kind of important. they ploy a lot of people. these are the materials that are elemental into our economy getting back on track. so that's now only 2 1/2% away from all-time highs. that's extraordinary nobody talks about material stocks on cnbc anymore so for me when i see those big tech stocks having a down day or even a down week, i like to see other areas of the market benefit and get some of those dollars. if we don't get that rotation

beneath the surface, we're going to end up with xlk names being 50% of the s&p at the rate we're going. that to me seems even worse. that's even less sustainable so i prefer these type of days, wilf, to answer your question. they don't concern me. >> on that note, for the week a whole, dow up 3% so we are seeing that rotation play out. we've got one minute left of the session for today, s&p 500 up 0.9, dow up 200 points, 0.8%, had been up. well off the highs the composite is half of 1%. in terms of sector performances earlier in the day, all sectors comfortable consumer staples and utilities just about in the red. other nine sectors higher industrials, financials, and energy stocks. in terms of the vix, which we've been keeping an eye on, up above 30 and below that today, it's

slipping to 28 or so oil prices high by 2%, gold is flat the dollar is a little soft down .2 of 1% by the way, as we approach the bell, ringing is comcast corporation which is a parent of cnbc to celebrate national launch of peacock streaming service from nbc universal. ringing the bell is peacock's chairman matt strauss available nationwide today at the close, .9% on the dow and 0.6% on the nasdaq. >> did not quite get there in terms of positive year-to-date performance on the s&p 500 we're pretty much flat for the year positive close welcome back to closing bell if you're seeing us i'm sara eisen with wfrd frost. take a look at how we closed on wall street, dow climbed we were up 4800 for the highs of the day. solidly higher the big winner was boeing

leading the dow higher most stocks finished the day higher except for unitedhealth, verizon and p&g. some lower utilities the only in the s&p to close down s&p 500 eking out a gain of 9% putting it around the flat line for the year it needed a few points higher to go positive year-to-date you get the picture, it's a strong one, industrials, financials, not in the number one spot today that's why nasdaq was only up half a percent on the day. a snapshot of what we've seen in terms of leadership for the market so far this week s&p 500 up 3%, nasdaq it's down 0.3 russell 2000 small caps had a tremendous day, really big rally up 3 1/2% as they played catch up third positive day their best day since june 5th when they rallied 4% very strong day for stocks

financials a big help there as we make up a lot of it after a brutal start, new jersey has seen big improvements in coronavirus infections comings up we'll ask governor phil murphy how high that bar is for reclosing the state if the virus does come back as the state reopens. first joining us to talk about the market, ceo josh brown and profit investments eugene profit is still with us portfolio manager sebastian page joins the discussion here is the part you play mike santoli, round up for us what you saw in the market, which is a big rotation where you did see groups like materials and financials and small caps do better these are the losing sectors is this the theme? if so, what's driving it >> so i would separate the two things out even though both have lagged the story with small caps is very different than the story with value stocks.

small caps actually aren't cheap versus s&p 500 so to the extent they have lagged, that really hasn't created a big valuation disparity. again, a lot of that has to do with the construction of the index and the industry groups that make up the russell so i wouldn't get too far down that rabbit hole but it is possible to underperform and still be just as expensive the value side, sara, is really the story here stocks like boeing and the dow, obviously it's a large dollar price stock so it has an outsized impact. it's a different construction in the s&p. that matters not because of what it does to the dow, stocks like boeing matter because of how emblematic they are of what's wrong in the economy and how painful the ongoing pandemic has been so i like days where boeing is green. but back to my earlier comments, i don't get so excited about it that i run wild with my

imagination that we're all of a sudden about to get back 2019 economy. i don't think a few days of dow stocks doing well really is indicative of anything other than sometimes people sell the tech and buy the other stuff. >> sebastian, you like the small caps is that right? >> we happenter overweight selma blair ca-- small caps. >> we take a 6 to 18 months horizon. small caps historically nine out of ten recessions have been asset class of choice coming out of the release, also benefit from fiscal stimulus i would argue they might not look cheap relative to earnings and a lot of companies losing money but this is a fundamentally temporary shock. if you take a longer term view, we do things small caps are cheap, add macro to it, you have

a compelling case. >> hey, sebastien. >> but neutral overall. >> sorry. >> go ahead. >> small caps tend to lead out of a recession okay i agree with that point. i think, though, even if you look at a fiscally adjusted pe ratio for small caps, they are still not cheap. even if you eliminate the effects of what's going on right now or minimize them and look at a long-term horizon, normalized earnings, if we get a normal economy back, i like small caps, too, but i can't make the case they are a bargain right now what am i missing? >> well, i think you have to look at the cyclicality and how you want to take cyclicality if you're of the view we're going to get to this eventually. valuations at the moment are very hard to estimate. it depends which earnings measures we look at. i agree it's different if you look at longer-term earnings or

current earnings there's so much liquidity in the system if you're giving a choice between cyclicality or more secular-type risks in value stocks, for example, i'd rather be neutral between value stocks, 6 to 18 months horizon, maybe hold slight overweight to growth stocks and get my cyclicality exposure in small caps generally speaking cyclicality has been undervalued in this recovery relative to historical recovers we will get to this. we got a taste of it today i also agree it's going to be bumpy to get through this recovery while neutral "storks" verpz bonds, not just loading up on risks, it's good to have functionality in the portfolio $24 trillion is the highest estimate i've seen for fiscal monetary stimulus globally so just think about that $24 trillion

this includes potential measures the total market cap of the stock market globally is $50 trillion so we're talking about 48% more money chasing less stock to buy than ever before and we're getting it three times faster than ever before so there's a case for cyclicality in the portfolio, while remaining neutral with stocks and bonds in our case. >> we're just getting some headlines here from dr. fauci, of course, the infectious disease expert at nih u.s. will have effective coronavirus vaccine said moderna were especially promising eugene that was the headline that drove the day top stocks, royal caribbean, carnival, they were all cruise stocks norwegian, american airlines and united airlines that was rounding up the top five on days like today, is not being in the market, not being

overweight stocks, is it a bet against ingenuity of some of these pharmaceutical companies rushing at light speed to bring a vaccine? >> i think it would be but i don't think you should be able to market and time it because we don't know when the vaccine will come i would suggest i think sebastien is correct with small caps, a day like today if you're looking beyond the fact the time period we held the vaccine, cyclicality in small caps is where you're going to get a lot of return. i think that's what you see with moderna news coming out and some investors mostly trading as if the vaccine was already here the problem is that almost all stocks are expensive right now so it's like where are you going to balance your portfolio between being invested now and having positive returns along with the rise in the market. we do, we own small cap but you want cyclical names in the

portfolio when we get a vaccine. i still think we're 6 to 18 months away from where the economy is back to where it was pre-covid, maybe even longer but investors looked optimistic and tend to trade the market as if the vaccine is already here i think the day was actually a good primer and what could happen when the vaccine arrives but the market is so expensive, in my opinion, that you're going to have bumps along the way. i do think a lot of earnings guidance is sort of suggesting that, that we are not going to have improvement over the next two to three quarters. starting discount with 2022, which is too far in advance in my opinion that's what we're left with. we're going to stay fully invested, balanced, a barbell approach and large cap, small cap, technology names but also v

valuation names for when the economy is recovered. >> goldman sachs closed high after earnings comfortably beating street estimates on both lines. on the call ceo david solomon outlined his level of uncertainty about the future outlook for the economy. >> i watch tv and read the news like everyone else, and i'm sometimes quite surprised by how certain people are i continue to be relatively uncertain as to the trajectory of all this. while there's no question there's progress with respect to companies making investments in a vaccine, and there was positive news again this morning, the exact trajectory of that, how deployed, whether it will work and the effectiveness of all that is still unclear and uncertain. there's no question as reopenings occurred we've seen a pickup in that activity but increase in viruses and uncertainty persisting, i think you'll see a flattening in that

economic pickup and that will slow progress economically from here we continue to advise clients to be cautious about that. >> so i've listened to all of these bank conference calls over the last couple of days. that sort of minute from david solomon sums up the sentiment all of them have in terms of outlook for the next 6 to 12 months, ie, there's very little confidence anybody can have in the direction in which we're heading. josh brown, the bank stocks themselves not actually that strong this week kbw bank index up 2 1/2% sara listed best performing stocks today, cruise companies and airlines weak to date industrial sect or up 5%, materials as you were touching on earlier 4 1/2% how does it make sense to rotate into cyclical sectors the last couple of days when we're getting that type of uncertain outlook from the people who have the best feel for the economy right now? >> yes, i agree with you we heard charlie sharp say the

same thing yesterday, jpmorgan say the same thing they are reserving for even worse credit losses. that's responsible, what we should be doing. in the case of wells fargo, told me things had gotten worse third quarter. that's not supposed to be happening right now if you look at stock prices. 2.5 million jobs in april and in march and april, we only gained back like 7 million. that's 15 million people still not working. every continuous claims number is a million more people that number doesn't seem to be getting better so we're now in a situation where it's reasonable to say the snap back we've seen in a lot of metrics, whether it's consumer metrics like shopping or some of these employment numbers that we've gotten the low hanging fruit of the recovery, the

fastest people who got their jobs back. now the road ahead is much more challenging. you've got all kinds of issues for the banks. goldman sachs i'm sure is just as much on the hook for this stuff. but you've got a lot of landlords, commercial, they aren't collecting rents. that's not going to get better this month, next month it's actually getting worse. forbearance doesn't make the problem go away. that's just debt tapped on at the end. you've got 5 million people thrown off health insurance since the crisis started people looking now at the sun setting of things like payroll protection, things like extraordinary unemployment benefit. what is going to replace these things i don't know i hope it's every bit as good as the original version if it's not, you're seeing a consumer spending ownturn. so it's great that everybody went and bought a new house and bought a boat and bought a bicycle, those things are important, they helped this summer, but i do think we're

facing the next 5 million jobs we try to get back, they are going to be a little bit harder. i think what the banks are telling us is exactly that. >> josh, thank you very much for that for joining us, thanks to eugene profit and sebastien page as well next we'll ask new jersey governor murphy how the state is preparing for a comeback this fall we're back on closing bell in 90 seconds. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

of retailers mandate masks for customers. this just in, kroger, the nation's largest grocery store, pure play grocery outside of walmart is now mandating as of july 22nd, all customers in all locations, and there are thousands across this country are going to be required to wear a mask in stores this follows walmart's similar move and other big box chains that decided to implement mask mandates just clear, mandate associates or employees wear masks. now this extends to all of their customers. kroger says because we recognize additional precautions are needed to protect our country. private sector really jumping on board. let's talk about local governments now, new jersey. one of the country's early covid-19 hot spots reported 27 deaths on wednesday bringing

total to 13,660 since the outbreak began one effort the state is taking to keep the outbreak under control asking travelers from 22 stae states to quarantine two weeks unlike its neighbor new york new jersey won'ting fining people who do not follow rules. joining us new jersey governor phil murphy. governor murphy, good to have you back on the show a lot to talk about. just in terms of the virus numbers, i read the deaths looks like hospitalizations and cases do continue to sablize how is the reopening going what is activity like. >> so far so good but we're digging out as an economic matter for years we've deliberately based decisions on data, incrementally and outdoor activities over

indoor we're still not there on indoor dining, we know this, but virus more lethal inside than outside. you're absolutely right, our hospital systems are in a lot stronger condition than we are at the peak of this. they did a great job every step. you look at the rest of the country and you won't be surprised to hear our mindset not out of the woods yet. >> not out of the woods with this wave, severe warnings from the fall, medical experts, flu season and a season it won't be as easy to dine outdoors how are you preparing for that >> carefully department of education put out as comprehensive a roadmap in terms of districts to put plans together and come back to them just as we did when we closed schools. we've got challenges, everything

from digital divide, which we need to address, to reliance on hot meals at schools with so many kids to the reality of the virus. the hardest nut to crack is to prevent that asymptomatic, otherwise healthy, unwittingly young kid unwittingly passing to older administrator, someone with co-morbidities, that's our biggest challenge in the school setti setting. we have to do this carefully and can't jump the gun. >> what's the latest advisory in and out of the state how uncomfortable is it to have to impose that sort of guidance when you want everyone to travel freely across the country and what should be the punishment if people break the guidance you're giving on that front >> it doesn't bring us a lot of joy, wilfred this is the united states of america. constitutionally we can't stop

someone at the border of our state. it's about the only time in my life that i'd ever thought i'd say i wish we could build a wall around either our state or our region but we can't. the mindset is simple. if you've been in a hot spot state, 22 of them based on rolling seven-day averages of data, we want folks to self-quarantine for 14 days and get tested we are reaching to people's personal responsibility, as we have since day one in this pandemic folks in our state have done the right thing. so this is both visitors as well as new jerseyans who traveled to those states and are coming back we don't have a blanket penalty but the department of health and commissioner has it right and ability to target noncompliant behavior while we hope for personal responsibility and good behavior, we won't hesitate to use that

>> wanted to follow up, governor murphy, on your school plans sounds like you're still working them out there might be some in-person learning but not fully why not when most of the studies show and also some examples in europe show it can work to bring students back to school. when president trump threatened to pull federal funding if you don't. >> yeah, i'm not -- the threats are not our consideration. our consideration is public health, mental health education. sara, i want to make sure i'm clear on this, our strong desire is to get back to school we agree with the points on the richness of education being in person but we've got to do it responsibly. just as i mentioned, when we closed our school systems, our school districts are very localized. we've got almost 600 of them, so we had them give us the plan for closure. we've given them broad parameters in terms of how to reopen likewise we're asking for plans

to reopen. no school district, no two school districts are exactly alike so we want to respect that but want to respect them to stay within the broad parameters we've laid out. >> i guess your numbers at the moment are better than some states and that's great to see you've also gone further than some governors as it relates to masks. that said with hindsight, do you wish you'd enacted stricter rules on masks earlier >> well, it's hard to say we could have been stricter indoors. the number one state in america to ban them indoors. frankly outdoors the virus is a lot less lethal but we know it is still lethal. frankly we also don't want to put in place things that are really hard to enforce so at the end of the day, you know what, both as a role model fact in particular when you've got folks outdoors and they can't properly social distance, that's our mandate, it's not if

you're on your own street walking your dog and you're by yourself, we frankly don't care about that i care and we care you're on the boardwalk of jersey shore, in line to get a slice of pizza you're on top of each other. there's not good ventilation, we want you to be wearing a face covering. >> yeah. there are a lot of crowds at the jersey shore according to social media and some of those pictures, governor finally wanted to ask you about budgets and layoffs. while this continues to be a political football in washington over whether states get aid, what are your plans? what kind of layoffs and cuts are we going to see and which cuts in the state? >> they will be dramatic, and they will be exactly the jobs we can't afford to lose right now in the extreme hour of our residents' need. it will be frontline workers, firefighters, police, ems, health care, educators it's unfathomable.

we need, beyond the shadow of any doubt, it's not just a blue state issue, not a legacy state issue, it's not the northeast, any american state that's been hit by this. by the way, it's overwhelmingly all of us. every state needs direct federal cash assistance to allow us to continue to employ these vitally needed folks to allow our states to get back on its feet to help our small businesses, restaurants. we have no other choice. >> governor murphy, thanks for joining us. >> great to be with you both. >> we've got news on galactic. lizzy has it for us. >> will, that's right. management change at the top of virgin clack particular, up as a result they are naming michael colglazer as ceo as the company progresses towards test flight program and prepares for commercial service he takes over for george

whitesides, that was the first ceo who will now assume the role of chief space offer most recently colglazer was managing director of disney marks, operations, experiential development of disney's parks and resorts. from space mountain to actual space, guys. >> there you go. after hours session appears to like it getting 5% pop leslie, thank you. am is doubling down on its news business. details straight ahead plus former whole foods whether retail industry will be able to recover from coronavirus disruption to sales. as a reminder, you can aaylws watch or listen live on the go on the cnbc app. we'll be right back. lexus suv. at the golden opportunity sales event. get zero percent financing on all 2020 lexus models. experience amazing at your lexus dealer.

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prlg. retailers already beaten down by the pandemic with store closures and layoffs now face another obstacle their crucial back-to-school shopping season is on the shopping block joining us for more on the state of the industry is former whole foods co-ceo walter robb now principle at stonewall robb. if you're a management company

trying to operate retailer back to school, holiday season, visibility, not to mention investors trying to figure out what to do with this companies how do you figure it all out. >> good to see you both. we've watched our retail rhythm. that's the thing as you say, retail year is built around going back to school. we've known that many years. now it's unclear are we going back to school, not going back to school some places. organize our shopping that way, our meals that way so thing we have to recognize we're out of rhythm trying to find a new rhythm we haven't done and there's a lot involved in that. >> i want to talk about food inflation we saw earlier this week what level of inflation is good for retailers, a small amount is positive, is it, when it relates to certain issues -- certain items like meat and eggs, for example, which jump quite significantly? >> a certain amount is a good

idea because it helps the top line and keeps things moving forward point guarding p&l what we have now we've got 5%, 5.6 on cpi look behind it cpi is stopped out. as i said before, i think the second half of the year is much more competitive with loss more promos and temporary price reductions as people compete for share. i think inflation was driven by the surge early on, the supply chain got choked off and had to recover. it had to rebalance. toilet paper, butter, flower, key items like this still haven't caught up on inventory that's where you could see elevated pricing >> i wanted to ask you about bankruptcies, which is the other hot topic in retail. every day brings new bankruptcy. paper store, new york & company, department stores, there's too many to even name here, walter

will there be any surprises or is it just going to continue to hit the weaker links that everyone expected attack bankrupt. >> i think the fact is covid accelerated everything that already was taking place in the marketplace. you will see some more i saw numbers from yelp folks, 30 to 60% of small businesses could go out we will continue to see disruption as covid turns left, turns right, throwing curve balls at businesses. very difficult to operate in this environment the main thing is can we keep the economy over in a safe manner not essential or nonessential but safe manner for team members and customers is going to determine some of that some folks have thrown in the towel and going into bankruptcy as you pointed out a lot in retail working to serve

people and it will depend on support in main street lending amendment or in terms of keeping the economy open to let them continue to serve their customers. >> walter robb, thanks so much for joining us. >> thanks for having me. we got some news on uber aditi with details for us. hi, aditi. >> uber said to be holding talks for an investment in its freight unit reportedly discussing $500 million in potential funding which would value unit at $4 billion. this is according to bloomberg attribute to an uber spokesperson tells me while it's not unusual for us to receive interest for investment in uber freight, we are not able to comment on rumors about the discussion implying this wouldn't be the first time others have looked to invest in this unit. to give you more context, freight gross bookings grew year over year. ebitda losses more than doubled

year over year it's a quickly growing but money losing part of the business. back to you. >> okay. thank you very much for that. now apple making some moves in the podcast space we'll have the details of that coming up next

>> i was tempted to sing this line but, the hills are alive with the "sound of music." josh lipton explains. >> apple news is getting a suite of new features including a new podcast called apple news today hosted by apple news editors that will be free to all listeners, about eight minutes long it's going to guide listeners with stories and how reporters are covering them. that wasn't all. apple produced about 20 audio stories a week for apple news plus subscribers remember the subscription service costing $10 a month. apple news introduced a new

curated local news featuring content to publishers. during the pandemic and economic lockdowns people are more interested in local updates. apple news isn't in and of itself a financial mover for the company but part of faster growing higher margin segment. as many investors excite about this stock, surged nearly 40% in just the last three months guys, back to you. >> josh, thank you cybersecurity firm crowdstrike one of the hottest we'll ask the ceo about hackers trying to take advantage of people working from home tomorrow, cnbc in partnership with acorns is sponsoring virtual live town hall it's a special and features americans affected by the current health, social and economic crisis rebuild their financial future it's tomorrow 7:00 p.m. eastern on cnbc. we'll be right back. what do you look for when you trade?

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kurtz. news update with sue here. hi, sue. >> hi, here is what's happening this here. nbc reporting mark meadows is telling white house officials to stand down on attacks against dr. anthony fauci. one staffer telling nbc that meado meadows, quote, wasn't happy about peter navarro's scathing op-ed about nowsch you can go to cnbc.com with more. ruth bader ginsburg has been discharged from the hospital she was admitted last night to treat an infection the spokesman said she's at home and doing well.

louisiana's attorney general jeff landry says the mask mandate and bar restrictions are likely illegal governor john edwards disagrees saying pandemic rules are both legal and needed two-time triple crown winning trainer bob baffert has been suspended 15 days by arkansas racing commission after two of his horses failed drug tests you are up to date that's the news update at this hour sara, i'll send it back to you. >> sue, thank you. up next, the stock has more than doubled this year crowdstrike has ridden the work omome wave big time. the ceo talking about what investments in security will look like.

covid-19 pandemic has become perfect opportunity for cyber criminals krorgd to kiesch

security company crowdstrike, files using covid-19 related themes since march as it is company helps in these fights against cyber attacks, joining us co-founder and ceo george kurtz very good afternoon to you thanks for joining us. >> thank you. >> why such a ripe opportunity for hackers? is this because they are hacking cloud storage, tech companies or all using our devices so much we might miss their approaches and fall for it directly ourselves. >> when you think about this particular pandemic, it is worldwide. i've never seen a topic with so much interest if you think where we are today anything related to covid is guaranteed to be open, if you aren't following practices we've seen lures talk about testing kits, c.a.r.e.s. act and getting money. we've seen educating users at home, targeting home users so it's a universal topic that's

going to get a lot of attention, which makes it a really juicy target for the bad guys. >> what are the key things you help your clients do to prevent against attacks. are you helping tech firms or helping individuals like us? >> well, it's mostly focused on large businesses down to small smbs we don't focus on consumer today although our technology will work in that environment what we tried to do is focus on the outcome, leveraging the breach, the platform we built equivalent to security using ai and machine learning to prevent threats that have never been seen before to prevent adversary groups whether nation states or e crime groups doing what they do well, getting into systems and causing havoc. >> what kind of boost storage have you seen in spending from your clients as a result of working from home and all the threats that come with it? >> in march it was just the fog

of war everyone was trying to get everyone up and running at home. i talked to at cio and asked about digital transition roadmap and he said he executed it one night in march when we look at work from home, it's really work from anywhere it isn't about working from home it's a more long-term sustainable trend died to digital transformation so a lot of our customers open remotely, cloud solution works perfectly for that it's off and you're up and running easily we see this as a more sustainable trend. what we do know is people aren't going to work in the same way as we have in the past. i believe a hybrid environment some people go in the office other people you'll have pods of offices, many people working from home and only going into the office one day a week. i don't think it's everyone back to the office and i don't think it's everyone not in the office. i do think it's going to be a

hybrid model and that's google to need protection when you think about cloud providers as people transform legacy infrastructure into cloud providers like amazon and others, they are going to need protection and we're there protecting those workloads as well. >> george, do you think the u.s. is prepared for the election or do you think there will be the same levels of questions about whether there's been hacking going on and outside influence. >> certainly election security is important not only here but around the world i think what we've seen in the past at least has given folks a view to what can happen again and how can they take better measures to protect themselves obviously we have a lot of customers using falcon technology to protect l environments, folks involved in these campaigns, et cetera we just need to be vigilant across the board because the adversary is going to continue to come after juicy targets and

wreak havoc. >> a lot of these security stocks, your competitors have also rallied, palo alto, a big scaler, what's the difference? are you chasing the same kind of business >> we focus on endpoint. you get someone like palo alto focus on network and z scaler is a great partner of crowdstrike transforming legacy strategies and doing cloud approach and we integrate well with them so everyone has their focus. i think what we've been able to do is capture the mind share and hearts and minds of customers in protecting their desk tops, their servers and crowd workloads. that takes a lot of focus. we want to be the best endpoint company on the planet and we've pioneered this cloud delivered, cloud native approach protecting endpoints from the cloud using things like machine learning and ai >> as we're speaking, george, a

bit of a question on whether certain high-profile people have been hacked on twitter elon musk is tweeting something that appears to be a hack, you never know, warren buffett as well how vulnerable are high profile social media accounts. think of president trump who tweets a lot and certainly hasn't been a victim yet clearly that's out there. >> when you look at high profile media accounts, in many cases, not all, the person behind them isn't doing the tweeting so you have the sharing of credentials. whenever you have the sharing of credentials, exponentially your tax service goes up. if a staffer gets their computer compromised, it's very easy to capture keystrokes and get that password, even if it's a complex password a lot of times that's what we find, a shared password between many people because the person who is very famous isn't necessarily always doing the tweeting.

>> yeah. this one is soliciting bitcoin into his bitcoin account that sounds like a hack. george kurtz, thank you for joining us. >> thank you so much. up next, the class of covid-19 we're looking at two areas where big money and education technology is going. testing d antechnology those stories and how to invest in it next you can't predict the future.

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thousands of 22-year-olds will potentially be living in crowded dorms and going to bars and parties when summer ends colleges are now putting huge high stakes investments to make sure all of that will be safe. >> this gives a whole new meaning to college testing a majority of institutions do plan to bring their students back to campus in some form this fall testing is a key component of that their approaches include pulling samples, leveraging local health organizations, using smart phone apps some of the largest institutions are creating their own testing infrastructure the university of illinois has developed its own saliva based testing sample

the university says it plans to test up to 10,000 students and staff each day >> we think the model should be applicable in many other contexts talk about companies, an army base, a prison there are many situations where you could imagine learnings translated into another context. that's our goal. >> this is a grand experiment then, not just for education but also one that potentially has lessons for corporate america. guys, you can read more about this on cnbc.com. >> thank you and if in-person learning isn't able to return, we've been looking at what could be a lurking giant in the education technology space, google >> the aim here is to hook the next generation of google users. g-classroom is a hub for online

cours courses. it looks set to continue in the fall so google is adding more privacy and security controls in the fall it's early days for the tech space, so there are many players with different specializations google is positioning classroom as a hub that works with other systems and apps that way classroom can give smaller classrooms a boost similar to how the app and play stores let developers reach wider audiences. as with those platforms, it could be at a special price. google as the scope and capital to move into other areas in ed tech and one day possibly eat their lunch. melinda gates has published a new paper on the impact of covid-19 on women and girls. she argues that ignoring effects on women could cost the global

economy $5 trillion in the year 2030 one example a two-hour increase in unpaid women's care work at home and a 10% decrease in women's ability to participate in the labor force gates proposes including improving health systems for women, design more inclusive economies, gather better data and utilize female leadership. the pandemic is hitting women harder because of their responsibilities at home one thing to watch is a longer term trend which is female participation in the workforce shows they are slightly exiting the workforce a little more than

men. >> it's a good article and good read on this topic we have been talking quite a lot, never enough of the minority impact of this crisis, less so on the gender bias difference, but certainly an important one as well. >> especially if you think about whether schools are going to reopen even going one or three days a week, someone has to stay home with the kids. up next, netflix has a huge quarter as we all stayed home and streamed and binged. ♪ (vo) touch and go. handwriting recognition and the audi a4. get exceptional offers at your local audi dealer. the volatility.

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welcome back netflix reports earnings tomorrow >> the big question is whether netflix can keep up its lockdown-driven gains that it made during the first quarter. this quarter, the second quarter, is forecasting the addition of about 7.5 subscribers, down from the 15.8 million it gained last quarter analysts expect netflix to grow earnings per share by 200% while revenue is projected to grow by 24%. it is worth noting netflix shares are up about 20% since its last earnings report some breaking news here. dell is confirming it is exploring a potential spinoff of its 81% ownership of vmware.

dell originally got control of shares through its $67 billion acquisition of storage hardware maker emc. that closed back in 2016 this was rumored to be out there, but dell now confirming it in a press release. both stocks on the move higher, especially dell up 7.75% "fast money" starts right now. guy adami, dan nathan, jeff mills. tonight on "fast," the dow posting another triple-didn'trit gain it was a big day for moderna later, jeff mills has a pitch on one non-bank name in the financial sector why he