growth in the current quarter. the covid-19 pandemic, dr. fauci talks to mark zuckerberg and pleads with young people to take the virus seriously. friday july 17, 2020 "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen andrew is off today. futures are off a little bit looks like they are down a little bit there you go waiting for this joe, it is friday, i'm in love >> it is somebody's birthday tomorrow too >> trying to get to you early.

andrew is out, so i have to find a way to annoy you >> what you asked for. your birthday is tomorrow, right? >> tomorrow, not today >> tomorrow. it's friday. >> everybody deserves to be embarrassed. we'll do it anyway this is the last day you'll be 19 >> 23. exactly. anyway, let's check out the futures this morning as joe mentioned, you'll see the dow down slightly by about 26 points s&p down by four s&p off by eight getting ready to wrap up another week the dow up by 2.5% over the last four days. s&p is higher.

on track for a third straight positive week. a little different story for the nasdaq tech has been on an incredible run. many of those names have pulled back not by a lot nasdaq down by 1.4% this week. if you are watching it, the index is up nearly 17% for the year that's about 58% above the march 23 low and above the march intradate high we hit on monday. we are continuing to watch that. the 10-year is the one we watch so closely it looks like the 10-year is sitting at the 0.604%. the bottom level of that range we've been watching where it has been sitting at forever. >> all-time low for mortgages. >> is it bad luck to wish someone happy birthday the day before >> i don't think so. i'm not really superstitious,

so >> i think everybody out in twitter land, since it is used for such negative things, twitter. i think it should be used in a positive way i might do it tomorrow not everyone can do it tomorrow. everybody else can do it today or tomorrow. >> out of sight, out of mind >> i heard that song you played. it didn't affect me today. >> i have to find out a new way to annoy you what happened? it used to be the thing for you. >> i need one of those programs that comes up and reminds me when it is someone's birthday so i look really considerate. >> this was twitter sphere that tipped you off to this >> it was. i need one of those programs and i'll put everybody's in there and never miss anyone before

>> welcome to 1999 >> our top corporate story this morning is netflix shares are under pressure. >> adding significantly below the subscribers analysts were expecting. it is all about subscriber growth i guess last quarter, it was 16 million. not covid editions but because of everybody being locked in, it was a huge quarter they had only guided to 7.5 million editions the one just ended was 10.

they had forecast only 7.5 so 33% above but some thought it was down from 16 it is never enough for people. >> i don't know why people are surprised by this. you pull so many subscribers forward, you anticipate this will slow down i don't know that it changes the long-term for the country. >> including the co-ceo, he was previously the chief content officer where they are just head and shoulders above other places here is what they said on the conference call. >> we've worked together over 20 years. he's been an unbelievable role

model. we've navigated some of the toughest decisions from mailing dvds and streaming around the world. to continue this successful train we've been on to continue around the world >> ted has big plans with future series and animation we got lots of places to put them on we are definitely focused on creating franchises the shares had done pretty well. you can see down it is great to have such an

unbelievable amount of content that big aussie guy, liam or chris. >> you don't know the difference >> i don't know which name is which. big guy. >> dark or blond >> dark hair big guy. similar body to mine are you going to get a cake? can i send a cake tomorrow >> sure. >> no surprise if you are sitting there waiting. you going to pop out of the cake with your hemsworth body

>> we'll continue to follow that cyber attack too revealing hackers targeted 130 accounts including a number of high-profile figures and companies. they will continue to assess whether they were able to access those accounts because they were such high-profile accounts. every blue check mark was shut down i started thinking about it saying we really needed to monitor closely. there areemployees that potentially have access to really important people's twitter accounts

was this just an accident waiting to happen. as twitter has gained more and more influence you've got president trump who uses it in his words because he thinks mainstream media doesn't cover him. and the dahli lama >> he does i follow him if you are just some guy on twitter that could put something in there >> the idea that there are twitter employees, that is not something any of us had really contemplated before. >> have you ever left without

closing down your stuff. i've done that and i forgot, my god if mack gets on my twitter account. >> we used to do this. i used yours or davids to top line one of your bosses to say i hate your tie because you had walked away. >> think about now the damage you could end someone's career with a single tweet. i'm going to log outright now, mack in case i have to go to the bathroom which will probably happen in three hours. the cruise lines under pressure again. the cdc to ban cruises the order set to expire next week i wonder if they were booked >> my guess is no because earlier this week, i got a call from carnival saying i had won a

free cruise. i don't know how but i'm the lucky one. i can't imagine i'm the only one who got a phone call the second prize is two free cruises. i don't think it is time yet to stick your toe back in the water yet for cruises. i don't know airplanes, they've convinced me. they say the air is cleaner. it has been recirculated around. >> i never felt that way on airplanes. pre covid. recirculated air never i think the bigger problem we have, you are still in a tube with a bunch of people and it depends if they are safely wearing mask we've all heard the story of push back or customers who choose to put it over their eyes or throat instead.

that would be a concern if you are sitting in e. to somebody then on acrues shi-- cruise ship you have to wonder how they are going to get to you the port you are supposed to be at in time. >> we have quarterly results dr. fauci pleading with young people saying that they are propagating the pandemic we'll talk to dr. scott gottlieb

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welcome back the futures right now are mostly flat

23 points on the dow the nasdaq is now negative down about 4 points making headlines, tiktok has removed 29,000 corona-related videos in europe social media platforms are trying to fight the spread in this case of misinformation. speaking of social media, the nation's top infectious disease expert talked to the head of facebook with a plead for young people to stop the spread of the virus. >> i would urge and almost plead with the younger people. i know if they really understood this, they would take it seriously. you have to have responsibility for yourself but also a society responsibility that your getting infected is not just you in a

vacuum you are prep gating a pandemic when i see pictures of people at bars, i understand that. i was there at one point in my life or see people in crowds you say, they are not doing anything particularly harmful but they might be. zuckerberg is making his own headlines criticizing the trump administration for handling saying the resurgence of the virus this month could have been avoided. joining us now dr. scott gottlieb, cnbc contributor, serves on the board of illumina and pfizer i was discussing this last night with my family the united states is almost like how many european countries. it started here kind of on the east coast and we dealt with it and we are ahead of texas and

arizona, i guess, you've said there may be hope in that regard that maybe texas, the curve will eventually flatten and we'll get this under control or did they already blow it? >> it is a second wave we'll probably not have a third wave we are taking a lot of this into the fall once we hit flu season, that will head up unlikely therates will hit a low again like we did see in new york it will run its course in states like texas, florida, alabama, georgia, mississippi looks hot right now. the states are not taking a lot

of policy action just withdrawing activities and staying at home more you are seeing that in google andres everybodiations at rauns. we have a few more weeks of continued spread the states are starting to show new cases. not necessarily because the pandemic is ebbing but because we are reaching the capacity on tests. it will look like cases are starting to level off. we should look at hospitalizations we are almost back through where we were in the peak of new york pandemic the numbers will be back to that this weekend the difference is that we can

preserve life better more are younger people, so they are not as sick. >> two weeks ago when we talked to you and in fact, dr. fauci talked about it not being the best metric, that is death two weeks ago, we thought people were using that as a positive data point you thought that would deteriorate as well. i looked at a website today. death toll set records is that true just in terms of total deaths we are siege or is that just a false headline >> the deaths were 977, we'll cross 1,000 which is a level we have seen since may. we'll probably not get back to those levels

we'll start hospitalizing a lot more people because this will increase over the next few weeks. we'll see deaths go up the people looking at crude number of death saying the death rate was going down, maybe that was true the death rate was going down but once you infect and hospitalize twice as many people, the total number of deaths will increase you'll see the deaths go up. the lag is about 21 days you started to see deaths go up in the united states, 21 days after you started to see the infections go up that headline is 1,000 versus 2,600. that just seems irreresponsible. >> i didn't see that but it seems wrong. >> typical what about the headlines from

frazier at merck his company is working on a vaccine along with others. do you feel companies have either been too optimistic or released data too soon have we been miss lead about the potential for an effective vaccine in the time i read it and i was like, wow, that's depressing. >> look. i'm on the board and companies will put that out when they have it putting out the data when available and publicing it is very important i think there is reason to be

optimistic you can use that to generate immunity against the virus and likely to have a they are pew tick effect i think the most challenging is just getting to manning and putting it in viles and distributing it i think that time frame is early 2021 >> we talked about this a couple of days ago but the controversy is still kicking around. the cdc no longer being the ones they are sending data to i know you talked about how

you'd rather see the cdc collecting that but that information is no longer available to the public. any new information doesn't seem to be available at this point. is that a concern and when do you think we'll see that data? >> the data has gone up. the cdc made the decision to pull that data off the website after that responsibility was taken away from the agency they are implying that moment was peak by the agency to do that i think you'll see an effort from hhs they made a decision recognizing that data systems in cdc were old and it is true they were. they weren't able to keep up with the collection to recreate

the systems inside i would have tried fix what was inside cdc rather than recreated. they made a decision to do that. they are sure that information now flows publicly you are right. it is no longer being collected by cdc they are involved in analyzing and distributing it. they are not taking the charge in running the data bases. the only public information out there is through july 14 the cdc chose to put down that dashboard and put it back up hss is the only place that has ha new information to me, that is concerning the idea that we don't see real-time data on this >> i think they are playing catch up and you'll see it reposted again i think they recognize they'll

put that information available >> johns hopkins says they don't need this data do you go along with the numbers and think that is a good substitute we should be using? >> and the covid tracking project. if you want to look at hospitalizations, that's a reliable source. it will be hard for the government to do anything to sub press this information a lot of hospitals and states are independently reporting to other venues so the cdc wasn't the go-to site for this anyway. it is important for the government to provide transparency i think they will based on what i'm hearing. >> okay. scott, thank you always good to see you we'll talk to you early next

week have a great weekend by the way, black rock results just crossing the tape it looks better than expected. $7.85 versus $6.99 the street had been expecting revenue better than expected $3.6 billion versus $3.55 billion. they do say the numbers were better than expected because higher nonoperating income, lower tax rate and diluted share count deciding to sell ownership. blackrock brought back shares because of that. we also track assets over management $7.3 trillion in assets under management up from $6.84 trillion a year ago and ahead of income in the second quarter we'll speak to larry fink, the

ceo of blackrock coming up turning unused concert t-shirts into potentially life-saving mas.sk we'll have that feel-good story just after this. sflush s so they can keep more cash in your pockets for when it matters most find out more at usaa.com for when it matters most our retirement plan with voya gives us confidence. yeah, they help us with achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.

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. finding a use for unused t-shirts mussic 4 masks the founder of the grateful dead has battled much to get on the stage but the coronavirus is one of the biggest obstacle yet. >> i have spent my entire life lighting people up from my place on stage and i can't do that now. >> he knows the virus has to get under control. he's joined others to repurpose

unused concert t-shirts for masks. when the lights went out, many were stranded. we have thousands of shirts printed with tour dates that aren't going to happen making 100% recycled shirts and using what could potentially become landful and repurposing them >> others donating shirts. for the basist, it is a mart of doing the right thing. >> there are so many more people than the six of us on stage. it is a big chunk. >> wearing a mask is crucial to get back to a place where crowds can enjoy music again.

>> this is the plea for folks to come together and make it possible for me to get back out and light you up >> already expected to ramp up to others where there is concern around the country from ppe. you can get 4 to 6 masks out of each if you want to help out. go to everywhere/u.s./pages/u.s. for masks. there is information there for you to turn old t-shirts to masks. >> i'm trying to figure out how that would work. i hope you appreciate your job

the ability to get to joe weibo weir if you put some wire rimmed glasses on him, he turns into jerry. the combination of the two of them we don't want them to turn into each other >> the amazing thing, joe, he's still lighting it up he's in maybe the best shape of his life >> becky pulling an elon musk there. >> when you said lighting it up. i was like what? >> i meant from the stage. >> got it.

>> i appreciate it this thing he's doing. you know, it seems like a really good thing they are going to donate the next round of masks that will go to tier one schools. bob is not that optimistic about getting back out on the road he thought maybe the end of the year now he's thinking maybe a spring but even that is not a sure thing, he said >> i've actually gotten to ask my question of bobby through you. about why he misquotes the lyrics and he says f off you remember, there is one word he uses. i don't know whether he forgot >> you got a hang up on that that they changed the word they are consistent.

they did change the words to bobby mcgee. you are right. now we play for live instead of now we play for -- they changed that too >> they were playing for clive davis. they changed that word if you've been on stage 50 years. i think bob may have played more concerts than any human being, you don't have to answer questions to joe kernen. >> if you told him that, would you apologize for me, please my one chance. >> if we could do this show afternoon which is more when bob wakes up, he'd come on in a heartbeat. >> you got to get him to come up

one day. get up early >> i don't think that would happen i leave a message at 6:00 or 7:00 in the morning. he'll call me back and on musicians time, joe. that is different from us. >> he could still be up at 6:00 a.m. east coast time >> you know the old saying, it is too late to go to bed early >> thanks, steve that is pretty cool. analysts coming up top of the hour, don't miss blackrock's celao rry fink stay tuned we'll be right back. you're first.

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netflix shares dropping sharply after the current subscriber forecast fills estimates. shares up 50%. this morning, you'll see a big drop last i looked, down 6.9% joining us now, michael nathanson. it is great to have you here, michael. >> thanks, becky good morning >> good morning. what do you think of netflix numbers? i can't say i thought it was huge to hear the big numbers

year to date that they might pull from perspective gains that would come later in the year >> i can agree with that based on a narrative of subscriber growth that will slow the next few quarters. i understand why stocks are down we don't have a buy on the name. the valuation is so extended that will wait for the next few quarters to pass you buy as it happens the anniversary the next half of the year >> that's interesting. to me, it wasn't a huge deal to say, okay, it is going to be choppy they have seen huge growth already. the valuation is a different one. what do you think is fair for this company how do you go about changing that when they've gone about that so rapidly and there is so much any directions in terms of

direct to consumer >> we looked a couple of years out. this year is unusual on many fronts including the cash flow growth let's look where we are in 2022. not much has changed two years out. just looking at price to sale which is my favorite metric because it is so squishiy. it's trading above the highest change enclose es to eight times sales on 2022. historically, it is 5.5 times. the multiple will come back to the sales range. it puts it probably at $400 stock the way we are thinking about it unfortunately, we've been consistent on that our focus has been on the free

cash flow that has not been the concern but all been about the subscriber growth. that growth starts to decelerate and the multiple will come on in >> michael, it is hardly the only name particularly in the tech sector trading in a hard valuation sector if you are looking at the broader i h broader things in terms of what you would normally thing as a growth versus the same stock, there is so much liquidity out there. is it hard not to change your mind and chase after the momentum when you see the stocks like this to continue to be so loved. >> the narrative is so good, right? we know talking about the media names, there is a shut down in production and sports.

this cord cutting is going to rise a ton you've got movie theaters closed it is a perfect narrative. >> we have the buys on facebook and google those valuations to suggest are not the same degree. we are focused on those names. those are easier for me to fend for valuation. those will be slow to recover. they just haven't run as much. >> thank you for your time good talking to you this morning. >> thanks, becky coming up, the 30-year mortgage rate hitting the lowest level ever a reminder you can watch or listen live any time on the cnbc app. we are coming right back

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still to come this morning, blackrock's ceo larry fink on his company's quarterly results. better than anticipated. $7.3 trillion in assets under management now at blackrock. we'll talk about markets and what he sees on the horizon and much more. stay tuned >> announcer: don't forget to subscribe to our podcast you'll get interviews, original content and behind the scenes access look for us on apple podcasts or

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welcome back our next guest says valuations

are in the market. joining us navid akbari. angel investors has $9.1 billion in assets under management we're going to talk about stocks, navid, but here's your expertise. fixed income markets, focusing on corporate credit trading, risk management, structured products you know this stuff inside out it actually helps with picking stocks and with equities, doesn't it it might even be better than people who don't have an expertise there looking at the actual core balance sheet assets of the company it matters, especially now >> we agree. given the corporate sectors nearing or approaching all-time highs, being able to understand the risk is key to the current markets. >> recently with the banks, we're looking at provisions and they're talking about past and

the future, but the number of companies that have -- that they have length mont money to that survive, we don't know with interest rates this low, the tide hasn't gone down where you see who's naked. there are companies that may not make it that are sort of being propped up by these low rates. >> absolutely. i think that's one key consequence. that policy, the amount of funding and liquidity injected markets has really allowed many companies to lever their way through this crisis. we think that's long term sustainable. something that in the longer term will have to be resolved. i think one key about the banking system is that it's really exact inverse back since the great financial crisis, banks have delevered and derisked banks have 40% more equity capitol than they did in 2007 creating balance sheets we think

should be able to weather the current crisis and economic situation. >> stepping over this, not talking specifically about banks. i mean, default risk in this environment you think should be a key consideration. i don't think everyone is thinking that. i think people are looking at valuations based on earnings per share, things like that, revenue. you say 20% of listed u.s. companies have debt service costs that are greater than earnings, one in five can't cover their debt based on earnings and that's something investors should probably pay attention to >> absolutely. that's the key point that we would like to make is that as you look at these balance sheets, i think we're really focused on valuation without necessarily looking at the down side risks that are inherent in some of these entities i think being able to find strong balance sheets in this market is really where investors will be rewarded that's something that we focus on significantly. >> i was planning on, you know, watching netflix i don't want to do all of these

things you're telling me i need to do for investments. have you done this analysis already? do you have some stocks that pass muster with you in this context? what do you like >> yeah. i think there's a couple sectors that really in the post 2008-2009 balance sheets, that's the banking sector leading the charge but also areas associated with real estate and residential mortgages. in the banking sector i think there's two names that we look at that are positioned very well, one being jpmorgan obviously a market leader in the banking sector but also goldman sachs. i think the beauty of these two entities is that they will be led by their investment banking divisions through time and volatility if there is a recovery, fees and income may be declining. you have the offset where these entities can start releasing some of the excess capital that they hold as well as normalizing

the environment. as you look at the profile of some of these institutions, being able to create a limited down side scenario while still having that up side is something that's very attractive. >> like a couple of community banks, hingham institute of savings, south shore >> that's right. >> where's green county bank corp >> yeah. so both of these are banks -- community banks, smaller banks that have long-term track records of double digit earnings growth. >> very small. very small we should point out. very small market caps. >> yeah. >> okay. and then -- but also -- sorry to interrupt because we have to go. do you like paypal or is that too expensive? >> i think the pricing on paypal is a little bit stretched. i think they're well positioned to perform well in this post covid commerce landscape that is clearly changing, but if you look at valuations for 80 times current earnings, really the

entire payment sector has seen valuations increase dramatically and in our mind they're a little bit stretched especially when you compare it to some of the other banks that we've mentioned here today most of the banks trading around ten times earnings. >> all right thank you, navid we appreciate it. >> thank you. >> thanks. very small take a close look at the market cap but, you know, i think maybe appropriate for some portfolios. appreciate it. thanks becky. when we come back, our newsmaker of the morning don't miss blackrock ceo larry fipg next here on "squawk. when we started carvana, they told us

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green arrows futures turning around pointing to a higher opening on wall street. a big beat for blackrock we'll talk about the firm's latest quarterly results and the broader markets with ceo larry fink. plus, tech coming under pressure netflix being hit hard with a less than upbeat outlook the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick. i was thinking about mack here i was going to introduce him as crocket or tubs. >> he's running. he's running there he goes. look. >> there he is >> wow you have the stuff, man. go, mack. >> we replaced andrew with crocket, tubs from either the movie or the series. but we digress. >> i'm liking it, mack >> what do you think when you wake up and your wife's sleeping, obviously, yeah, okay. no, i said i'm down with it. embarrassed, but i'm down. u.s. equity futures -- >> he looks good. >> for becky's birthday

tomorrow happy pre-birthday i sent you a cake on twitter i showed you that. you need the application. >> that you stole from somebody else >> i did i regifted anyway the dow's up about 18 1/4 nasdaq up just over a point and the s&p up a little bit. i don't have any confidence in any of these numbers being anywhere -- who knows by 4:00 today but there had been an upward bias for months in the market which is surprising given the covid backdrop that we've seen >> well, guess what? we have somebody that knows a lot more than we do so let's get right to our newsmaker of the morning. blackrock, the world's largest asset manager just out with the quarterly results. earnings and revenue topping expectations joining us right now is blackrock chairman and ceo, larry fink good morning great to have you here this morning. how are you doing? >> very well, becky. how are you? hi, joe.

>> good to see you >> thank you. >> let's talk about your earnings first up because that's the news of the morning. those numbers were better than anticipated and by a big margin, too. earnings per share the number came in at 785 versus $6.99 the street was expecting there were a lot of things to make that happen one was lower taxes. you had higher non-operating income and you bought back a lot of shares, 1.1 billion it was a smaller share count talk us through what you think was the most important about the quarter? >> well, i think the quarter really represents the position blackrock has with our clients clients are confused clients have been witnessing extreme volatility, extreme emotionalism related to our pandemic and what it's doing to parts of our society we saw a dramatic decline in the market in the end of the first

quarter. now we've seen a dramatic rebound. markets are still down anywhere from 4 to 11% worldwide from the start of the year, but clients have come to blackrock more than ever before. they're looking for more contextualized information they're looking for a purpose in which -- how to navigate around the markets. i think throughout the quarter blackrock has enjoyed deeper, broader relationships with clients across the board even in our retail platform worldwide we were able to raise over $16 billion throughout the world in retail assets we had active equity flows very different than the industry for the fifth consecutive quarter. we had active fixed income flows, $51 billion of etf flows and then our allotted technology platform grew by 17% in terms of revenue. so you put that all together, it really was illustrative of more and more clients are looking for

blackrock to get information to interpret the information for them and to help them invest their retirement savings or investing for any purpose. and i believe that was one of the key characteristics of the quarter with $100 billion in net flow. >> larry, it is kind of amazing, $7.3 trillion in assets under management you have a good idea in what investors are thinking what maybe the broad overview is for the things that are happening. jamie dimon earlier when jpmorgan was out with its earnings said that he thinks the entire recession has just been pushed back but that you could see bad things come towards the end of the year. all of the fiscal stimulus, monetary stimulus has put off what you would normally see. there is real concern about a cyclical economic downturn happening as a result of the economic shutdowns what do you think on that front?

>> we are in an economic downturn but because of the great policy responses by governments worldwide, as you suggested, becky, both physically and monetary, we have really stabilized major components of our economy. corporations who had fear of accessing the capital markets were able to access and so we saw large fundings of debt and inequity to stabilize the -- our corporations worldwide and so they're in a much better position and i think what jamie was saying, what the other side of the problem of the economy, we are still seeing major segments of the economy that still have not been able to reboot, whether that's entertainment or travel or restaurants. all of the many components of the service side of the economy. this has been very devastating to many small and medium businesses this is one of the big issues we're confronting. large corporations have been able to fare basically better

than the smaller organizations and so we're witnessing an economy that is running very fast in some areas of our economy and very slow in other areas. what we've witnessed from banks in the last few days of the earnings and in terms of the provisioning, they're provisioning some very large loan losses in their small and medium businesses and that identifies why there's a need for another fiscal stimulus, which i know congress is contemplating right now. there is a need to assist the economy for a little more time at the same time, we need politicians, we need business leaders to show more compassion. we need to be more courageous. there is -- we were witnessing many, many states reopening but reopening without wearing masks. we need a world of compassion

and that compassion is meaning wearing a mask if we all wore masks, if we all cared about our fellow citizens a little more, we would be resolving this crisis much sooner and hopefully in fall, hopefully in winter or early next year we're going to have some anti-virals that will minimize the impact of the disease and maybe sometime next year we can even have a vaccination. but at this time we are witnessing a very uneven economy, and at the same time though investors sold large pools of equities in the first quarter and then we had this big rebound. year to date there's still the net outflows in equities in front of this big equity rally we're seeing investors are scrambling looking where to put their money the other thing that we are witnessing though, pension funds are going to become more and more under funded because with

persistent low interest rates, with interest with 10-year treasury, you know, at historic lows, this makes their liabilities to be larger and so the mismatch now in retirement assets is only getting worse we're witnessing so many families who are struggling. they're using some of their retirement savings to feed themselves, to pay their rent. >> right >> so this is going to take many years to resolve, and we should be all aware of that at the same time, i believe there's very good progress in our economies in the world i actually believe we're all learning how to operate under covid. blackrock showed that we've been able to operate quite successfully with 99% of our employees working remotely i'm actually in my office for the first time in four months today, and i actually enjoy it i'm sure joe enjoys being in the studio

>> yeah. larry, you're right. the government has helped to this point there's very likely going to be another stimulus package that comes. big companies are in better shape, but when you start thinking about the small and mid-sized companies and whether they can withstand an extended shutdown without having the full customer capacity coming back, that's when i wonder if it catches up to us at some point, are we looking at much tougher times, much tougher economy. if some of that spirals, the end of this year, the beginning of next year, does the market reflect some of those or do you think the market is right to think the governments and the fed are going to be able to carry us through no matter how long this lasts? >> well, i think if we can have a more compassionate society we can all wear masks, we can get through this much quicker. if we can do that, as i said, we will have the development of

antivirals that will mip mize t the severity of the disease and we will have more normalization. if the disease continues to grow, if mortality rates grow from where they are today, then we're going to have to see another shutdown of parts of our economy and then the small and medium businesses, those organizations that you were speaking about, becky, are going to have a harder time. you know, blackrock has never believed we're going to have a v-shaped economy we believe this is going to be a slower, more persistent rebound, but we do believe there is a rebound, it's just going to take longer we're seeing segments, as you reported earlier, housing is very strong right now. we are seeing consumers actually wanting to normalize their lives. they're looking forward to it. so we need to focus on how do we normalize our lives? how do we make our lives more certain? we need to do this with greater

compassion and we need -- we need more leaders to have courage by speaking out and by trying to build societies to bring our economies that have, i would say, a broader rebound in our entire economy, not just segments i think it's going to require more time and more leadership. >> larry, i've been wanting to talk to you about your bhoel environmental sort of initiative and trying to -- i don't know whether you're actually forcing companies to adhere to some of your viewpoints on these things, but i did see a piece, i know you saw it in the wall street journal, i thought sort of encapsulated some of my thoughts about it, by a very smart guy, c. boyden gray, special envoy to president bush in fact, he was an architect of

the clean air act of 1990. so he actually thinks that your efforts could result in actually being an anti-trust issue. some of the stuff that he did point out i thought eloquently check this out and i want you to respond to this. this is sort of how i felt, and i know that you get some pushback can't be across the board. check out what this first one says got it lear. america's largest financial institutions are picking winners and losers in the energy sector for political reasons in boyd den gray's view. under pressure from environmental activists, banks are withholding desperately needed capital from oil and gas companies and in doing so they put millions of jobs at risk and may even be violating federal antitrust law. when america's financial industry starves them of capital, that is not fair free market competition it is barrelling towards collusion and inviting billions

of dollars of antitrust liability. do you just reject that out of hand, that this is some sort of collusion that you're entering into that you could be liable for down the road? >> blackrock is not a bank we're not involved in any. lending so we should not conflate what he said about banks. i'm not even aware of what banks are doing related to energy companies so i'm not -- i don't know i mean, i read what he said but he was conflating one thing versus another let me just talk about the flows, joe last year in our etf sustainability products we had $12 billion of flow for the entire year. in the first -- in the first six months we had $17 billion of flows. so this is not our money our clients are looking to invest in more renewable, sustainable products that's not starving other sectors, it's just a surge of investments in new energy, in

new technologies so what we're witnessing worldwide is a surge of interest in clients looking to put money in more renewable components of energy and that surge is going to continue. so if you think about our energy network today, we're using now more renewable energy in the united states. that's continuing to do that we look at that as a good thing. so we are responding to our client's wishes where they want our money -- where they want their money to be placed. >> larry, you're also taking a lead role yourself here. you took -- you even point out, you've identified 244 companies that are making insufficient progress integrating climate risk into their business models. if we took voting action against 53 >> yes. >> so you are actually -- you are doing certain things as an

activist and i'm just wondering whether that's an appropriate role for you would you do it for pro choice -- go ahead >> joe, let me tell you what we did. we -- in my 2020 ceo letter we asked for companies to report on tcfd and sasby and many companies have not moved forward, and that's what we're asking of them we're looking for better transparency in how they are navigating their company, and that's what we are doing we have not made big, bold changes but we're asking for better disclosure. and i don't think there's anything wrong about asking for better disclosure across the board. and i think going forward, we are seeing more and more companies doing that, and they're doing it because it's good business for them the one thing that is very clear in this covid world we're living in, beyond the sustainability

world, joe, stakeholder capitalism is only going to become more and more important the companies that focus on all their stakeholders, their clients, their employees, the society where they work and operate are going to be the companies that are going to be the winners for the future and we do believe these issues around social issues and how they operate, and this is why we have companies report under sasby and under tcfd so we can truly understand how they're navigating around this whole long-term trend of climate change. >> right, but -- >> we believe more than ever before, joe, that climate change is investment risk and we're seeing that through our clients and how our clients are allocating capitol we're not denying capital to the energy companies if our clients want to put money in the s&p or in a specific energy fund, we are not denying that. >> do you think it's -- >> the only segment -- the only

segment where we said we're not investing it is in thermal coal. we are not denying in other hydrocarbons we are working side by side with many of the great, great energy companies. in many cases, some of the leaders of these great energy companies are trying to transform themselves in moving forward. >> okay. >> so i don't want to get involved in a political commentary, but much of what was said was so conflated. what we are doing is trying to move everybody forward we're not an activist. >> the boyden gray piece, then you're saying he conflated blackrock with these banks do you think it's appropriate for banks to be cutting off capital to companies that are doing hydrocarbon exploration? do you think there's a risk that we lose these very high paying jobs, that they're actually taking an activist role in picking winners and losers in what should be a free market decision on how we move forward?

you said that's the banks doing, we're conflating you with the banks. do you think the banks should be doing it, too, larry >> i don't think banks -- i think banks are strong capitalist organizations i think they also look that climate risk is investment risk so they're navigating their portfolios you know, i don't want to respond to any one thing, but i believe they are very good at allocation of capital. they're withstanding the covid crisis very well despite their reserves i'm not here to -- i don't know what they're doing in terms of holding back capital i don't see that myself but i can't respond to it. but i -- once again, if you truly believe that climate risk is going to be an investment risk and you're trying to navigate your asset allocation, that's a proper response that is not -- that is not an anti-trust issue, that is an investment decision.

>> hey, larry, i want to ask you about blackrock being chosen by the federal reserve to oversee the three government bond buying programs what can you tell us about what's happening with that program? and has it worked, had the intended effect of stabilizing the corporate debt market? >> throughout the last four months blackrock was retained by five different governments to be working alongside with them in helping them develop policies to stabilize their economies. the specific programs that you're asking for have been highly effective, highly successful we actually have -- i think the announcement by the federal reserve about these programs way before we started initiating the programs, they have stabilized the corporate bond market, stabilized many other markets. corporations who in mid march were frightened whether they had access to capital, within weeks

after the federal reserve's announcement were able to access capital, access the full amount of their need and we stabilized many great american companies through the announcement of the federal reserve's programs and the programs that blackrock was initiating over the course of the last three, four months. this is something that we're very proud of, becky we have -- our financial advisory group was started in 1994, it is an organization that we have built throughout the -- over the last 26 years we did a great deal of work in the 2008 crisis and i think it is because of our fiduciary culture. it is because of how strict we are in terms of containing information in the fire wall i personally am not on that side of the wall so i don't know what we were doing there, but i do know in having my conversations

with the policy makers, that the work that we've done has really helped in designing the programs and in implementing the programs >> no argument at all in terms of the impact. i think it has absolutely stabilized the bond market, as you mentioned, even from the fed's decision on this it has been a little weird to see some of the companies that are being bought, you know, companies like walmart, berkshire hathaway or something. it's funny to think of the fed stepping in and spending money on those companies that really don't need any help or assistance with some of these things how do you go through, is it just the idea that the government's there, they don't know -- investors don't know where they're going but they know they're going to be supporting things and nobody wants to fight the fed how does it work >> i think the objective is to stabilize the capital markets so anybody who has the ability to access the capital markets can

do that. the idea was not to pick winner or losers but to protect jobs. this was a very different -- these were very different policies and programs than 2008. i mean, in the conversations i had back then and the conversations today, every program -- everything we were trying to do is stabilizing markets so we can stabilize jobs, so we can protect america, build america back again it wasn't like stabilizing financial institutions like -- which was, what, a major component of what was done in 2008 when the federal reserve had a buyout of big blocks of assets from financial institutions these were to stabilize and to rebound america's economy. i applaud our treasury department under secretary mnuchin and chairman jay powell. they were -- they had a lot of fortitude. they had a lot of strength and conviction and i think the

results speak for themselves >> larry, just going back to what happened in 2008 and 2009 versus what's happening right now, hard to compare, they're very different, but which do you think is a more dangerous and deeper recession, what we saw then or what we could potentially see now? >> i think our present situation is far more difficult because it's touching so many parts of our economy. it's -- and the unequalness of how it's impacting segments of the economy, unequalness how it's impacting segments of businesses and i think it's very -- it's going to take a longer time to restabilize the entire parts of our economy, restabilize the entire components of our society. i think this is just much more difficult because it's much more embedded in the base economy it is not embedded in the -- in

one industry like housing principally was and financial institutions in 2008 this is embedded in our entire economy. this is much more psychological, too, because of the fear of the virus, the fear of elf this is an existential problem, too, so it's way beyond a financial crisis that we saw in 2008 and that's why i do believe it's going to take longer for us to find that stability, because it has a real psychological impact on so many people. people feel unstable, they feel uncertain. they're looking for hope, and i do believe the policies of our governments, i do believe what we're doing, we're trying to find solutions and hope and hopefully we do have those medical breakthroughs that that hope can be realized very rapidly. >> i just think back to all of the fallout from 2008 and 2009,

the long-term implications from that, how entire generations were changed in their mentality about what they thought about the markets, about what they thought about jobs, what they thought about governments as a result and we're still living with the after effects of that what are the potential implications that you play when you look two, three, five years down the road from this situation? >> i think they're going to be dramatic when you think about the young people joining firms like at blackrock, we have a training program remotely very different -- very different results versus being in office working side by side with people but think about these young people who are joining the work force now. they were quite young during 9/11 in the united states. they were young teenagers during the financial crisis and now they're entering the work force and we have covid and they're working remotely i believe their life's experiences are so vastly

different than, well, my life experience i was innocent and idyllic childhood. i think the experience of these young people today are vastly different and their behavior's going to be different. quite frankly, you know, just getting back to what joe was talking about related to sustainability in environmental, the young people in all our surveys are more vigorous in terms of the protection of the environment more than ever before i think the existential risk of covid, the racial inequalities that we've witnessed in the last two months, i do believe the younger generation is going to be more vigorous in terms of social issues and environmental issues i know that in blackrock's own work force this is not just going to be a slow change but i actually believe we're going to see an accelerated attitude towards these issues

i do believe this is why i have been so vigorous in myself in making sure that black rock is as purposeful as we can be and why stakeholder capitalism has to become a major component of what every business leader is focusing on. >> larry, have you talked to the biden -- to the vice president or people around him about treasury secretary would that be something that -- we always ask you that it's been -- how long has it been since last time would you -- you would serve if asked, i'm sure. >> joe, i am extremely happy with my job. i have never deviated from those views and i'm happy where i'm sitting now. >> was that a no if i were you, i would be happy, too. how many trillion, becky what did you say i lose count of it >> 7.3 trillion. >> i want to --

>> you are treasury secretary. we could call you mr. fink >> you still can call me larry. >> call him secretary fink. >> just as long as we call you for dinner. >> that's great. >> that's right. all right. >> larry, i want to thank you. >> sorry, go ahead, joe. >> so he didn't answer would you -- would you if they asked you for your country, larry? i think you would, wouldn't you? >> i am happy where i am i am thrilled -- i'm honored in what we've accomplished at blackrock. >> okay. good answer. >> thank you you trained me, joe. >> i did. all right. good to have you for an extended period, larry. >> thanks, guys. enjoy. stay healthy, please >> bye-bye. >> thanks, you too coming up, what investors need to watch in the day ahead first as we head to break, let's get a check on the markets "squawk box" coming right back

let's get you caught up on some of the headlines this morning. freddie mac says the average on a 30-year mortgage has fallen to 2.98%. that's the lowest level in the nearly 50 years that records have been kept to put that in perspective, the average rate on the 30-year was 3.78% at the beginning of the year and that makes a huge difference later this morning we'll be

getting june housing starts and building permits those numbers are due at 8:30 eastern time starts are seen rising 18% while permits are forecast to have risen by nearly 5%. when we come back, why private schools in the suburbs are seeing a surge in applications and what they're doing about that we have that story and the implications when "squawk box" returns. time now for today's aflac trivia question. on average, which country consumes more ice cream per capita per year? the answer when cnbc "squawk box" continues this was an unexpected bill not covered by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks. aflac. when you're sick or injured, aflac is there. we can help with expenses health insurance doesn't cover.

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the pandemic sending many wealthy new york families to the suburbs. now they're seeing a surge in applications suggesting that the flight could be permanent. robert frank, you've got so many different ways of looking at

what's really going on, and this is another example, i think, of what you've been bringing to us on a daily basis. >> yeah. it's a really interesting window nearly 1/4 of a million students attend private schools in new york city, but wealth flight from new york is now creating school flight with students and their hundreds of millions of dollars in tuition flowing to the suburbs. from the hamptons to westchester county to connecticut, private schools around new york say applications have more than doubled this spring and summer from last year the greens farms academy in westport, connecticut, typically has about 25 applications in the spring and summer. this year they had 69. only a dozen will get slots since they're now full >> school like ours, we have 44 acres. we have a lot of kids outside. we're able to take advantage of small faculty/student ratios

ultimately it's a quality of life, not something that will be a short period transition but something to commit to over the next several years. >> now some manhattan schools are seeing an enrollment decline of between 10 and 20% in the fall the average tuition, guys, in manhattan is $50,000 a year per student. while manhattan schools are still debating the fall plans, many schools in the suburbs say they will open in the fall that's the big difference, guys. >> hey, robert, is that the big difference, just because the schools in the city don't have the space to be able to spread out and the schools in the suburbs do >> reporter: it's the space, it's the money, and it's really the ability to have all of this tracing and equipment. private schools in general have more money and in the city they just -- even though they have the small class sizes, they just don't have 40 acres to spread the kids out so that is the big reason. and there's a lot more certainty

in the suburbs when it comes to the health than the path of the virus than there is in new york city. >> so all these wealthy people trying to get into schools in connecticut and the hamptons and beyond, what do they do when they don't get one of the slots that are there do they, oh, gosh, go to public school >> reporter: yeah, oh, gosh is right. and obviously the public schools in those wealthy areas are terrific and so that is exactly what's happening i talked to a lot of public schools in the hamptons and parts of connecticut, they are seeing an increase as well unclear whether this is going to be permanently let's keep our kids in the public schools for the rest of their terms or whether this is for a year or so this shows once your kid is in the school, that means you're not coming back to new york city in the foreseeable future. big impacts on new york city real estate, economy and of course on the tax base. >> yeah. the private schools in new york city, i guess they're feeling a pinch with this. if you don't come back this

year, do they then turn around and let you come back a year later? if you leave them in your time of need, you're out? >> well, becky, you know how hard it is for kids to get into a private school in manhattan. the fact that they worked so hard to get them in and are now taking them out shows how serious and permanent this decision is. i don't know whether a lot of schools will take back kids that just leave for a year, but that just shows what a major life decision these wealthy families are making it's not just camping out in connecticut for the summer, this means they are out for the foreseeable future >> robert, thank you great to see you. >> reporter: thank you you, too. when we come back, we've got this morning's stocks to watch and don't forget, be sure to check out our podcast, squawk pod. look at the day's top interviews, analysis and so much more i don't think we have the stuff we say in the commercial breaks, but maybe some day

you can subscribe for free wherever you get your podcast. stay tuned, "squawk box" will be ghback

welcome back to "squawk box," everybody. the futures are on fire this morning. not really take a look at this. you see the dow down by a 1, s&p down by 1.5 and nasdaq down by 18 points. we have seen pretty significant moves this week for the s&p and dow. those have been up the last four sessions in a row. they have been up cumulative, up three sessions and then down yesterday. we are seeing decent gains for those two averages this week. >> what happens in a covid world

during those slow days in august, becky? does it happen are there vacations? are there dog days of august >> i don't know. that's a question i think i asked mike santoli that earlier this week, because it has not felt to me like we've seen any of the really dreary days where everybody is on vacation and everything is out. it seems like people are -- traders are more active, more paying attention because what else are you going to do, right? >> right >> nobody's traveling. >> i'm just wondering, you know, everybody -- obviously just being -- working from home is not on vacation, but it kind of feels like you're -- do people take a vacation from the vacation and then they don't watch the market as closely in august when it's hot i don't know i don't know if that happens. >> maybe >> here's a couple of stocks that we might want to keep an eye on j.b. hunt, the shares are trading higher this morning. the transportation company posted better than expected earnings in revenue despite a slowdown earlier in the quarter because of the pandemic.

shipping demand has seen a steady rebound though since then interesting chart. less of a slope on the right-hand side. lending tree getting a boost this morning the company is raising its outlook citing higher demand for refinancing as mortgage rates have dropped to historic lows. coming up, closely followed analyst rich greenfield on the latest numbers from netflix. the stock under pressure this morning down almost 9% stay tuned this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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netflix shares are trading lower this morning the company missed on earnings per share and beat on revenue and subscriber additions the light third quarter guidance led the stock to plunge. netflix also announced chief content officer ted sarandos will be taking on the role of co-ceo reed hastings saying it's de facto. reed hastings noted the emphasis on content creation. >> got big plans to spend future billions in our movies, series, animation. we've got lots of places to put the money and we're definitely focused on creating franchises >> joining us now, rich

greenfield managing partner at lightshed partners and one heck of a fortnite player. let you get back to that -- what what >> joe, i'll play with you any day. we'll play any day. >> that is a cool shot lightshed logo is cool how is 10 million? is 10 million good for the quarter that ended it was above the 7.5 people were expecting. >> look, netflix is all about the whisper and do they get to the whisper, what's the guidance remember, they reported last quarter and people panicked. the stock i think plunged down to 400 -- i think it was 420 after hours and look at where it is now it's at 480, 475, 490. i mean, the point is, you know, fast forward three months and the stock is over 10%, 15% higher so this stock has moved in step functions for years.

it's been the most volatile stock i've ever covered in my career covering stocks what's the fundamental shift here people are streaming more video. people are moving away from linear tv. your own parent company nbc comcast had a huge announcement this week with peacock i watched linda yacarino talk at signal and she's talking about the need to embrace technology, shift into the future. i think that is all netflix. if you think about it, netflix is the leader in this category they're dominating they've added almost as many subscribers in the first half of the year as they did all last year i think the most important fact if you look at anything from earnings yesterday, the most important fact to walk away with is that u.s. subscribers are excacceleratin accelerating they're at 73 million subscribers and they've been accelerating which just speaks to how big the global opportunity is the global opportunity is way bigger when you realize how penetrated the u.s. is 73 million subs, joe

we're getting up to the place where paid tv is in the u.s. in terms of cable subs. >> i was thinking they needed content for everybody, but the dubbing is getting better. it's not perfect but i watched stuff from -- the foreign language stuff i don't notice it after a while that i'm watching something that's in a different language, although at this point with nothing getting made, don't you foresee a slowdown in content? how do they handle that? do they buy more >> i watched ron howard, he has his first show or first movie he ever produced, "hillbilly elledge gi" it comes out in november the crown is coming out. netflix is a year ahead. they have content where most of hollywood has nothing.

joe, as you said, they create content and they've restarted production in a lot of different markets. they're going to be dryer than they were in the first half of '21. they talked that it will be back end rated in terms of '21 in terms of the content that was supposed to come out they're definitely behind schedule everybody else is far further behind schedule. i think on the movie side, that is an important point. netflix is continuing to put out movies movie theaters are not opening up any time soon it's pretty clear this virus is aerosol. hoover reversed their position i was watching dr. fauci with mark zuckerberg. if this is aerosol, movie theaters can't open. if they can't open, the position

of being direct to consumers is a huge advantage for netflix the advantages are going to grow because of covid, not shrink the stock may go down today. i think it's going to rally throughout the day the reality is wait to see where the stock is three months later. it's always hard to look at netflix on a daily basis. >> when they forecast 7.5 and they did 10, is this forecast we're seeing now below what it's really going to be, do you think? >> first of all, i don't think -- if you were to go back and plot what netflix said their number was going to be versus what they actually did, you know, their ability to be, quote, unquote, accurate is pretty low i think they do their best i don't think it's intentional they've missed big several times. they've blown out the number a whole bunch more times rarely do they come in where you expect in terms of that forecast i think it's hard. this is a business that's all over the world and trying to predict not just u.s. subscribers, that's hard enough. all over the world in all of the

various markets is very challenging. look, the one thing that i think has been pretty clear with hong kong disneyland reclosing, you look at the stats out of the u.s. that are pretty depressing in terms of what's happening in california, florida, texas, arizona, if the pandemic is not ending any time soon for a lot of us around the world, certainly in the u.s., the overall tailwind that netflix has and streaming broadly, not just netflix, this is benefitting prime video, hulu, hbo max, disney+ obviously, everyone is benefitting, i think that the expectations are pretty low for q3 and i wouldn't be surprised to see that number come in meaningfully better, especially outside of the u.s. those numbers look pretty -- that expectation just feels conservative but, look, a lot could change over the next few months vaccine wise. we'll see where we are my guess is that they crush that 2.5 million forecast. >> just a general question, i guess, a little bit of a plug

for peacock. have you noticed like a minute worth of ads is no big deal? i don't even notice it i watch the little thing go -- and i'm almost done and then i'm really -- then i'm done. that's because we're used to four minutes of ads. it's like -- i mean, it really is not bad to watch. i don't mind 30 seconds or a minute worth of ads and i don't have to pay for them. >> look, the reality is a lot of people are not paying for peacock. if you're not paying for peacock, five minutes an hour is almost nothing it's a far better -- yeah, but it also pushes you away from linear tv faster because it's less time. it's a better experience >> you have both it's tough to navigate, rich that's why we have you that's not a real shot if that's a real shot, we need will smith because there's people coming down from that thing. that's like independence day anyway, we have to go. thank you, rich. >> thank you >> fortnite, bye becky. >> you won't pay for no ads?

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good morning home stretch a dye verivergent f the markets. the dow up 2.5%. the nasdaq going the other direction as the tech trade suddenly pulls back. another new coronavirus case record the u.s. sees more than 75,000 new infections in a single day and the highest death toll in over a month this hour we're going to speak with the testing czar from the white house coronavirus task force. and netflix adding way more customers than expected during its last quarter, but the company not so bullish on the current one. we'll talk streaming competition, media, and much more with legendary investor

mario gabelli. an hour of "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is out today. we've been watching the u.s. equity futures nothing to really write home about today. the dow futures are indicated higher up by about 37 points. s&p futures up by 2. nasdaq down by 2.5 joe, we were having the conversation about volume when it comes to the market, how many people are around, is there going to be a slow, lazy days in the summer. >> right. >> fortunately for us we have smart people listening bob pisani wrote in and gave us the answers to some of those questions. june was much lower, trading volume in june was much lower than what you saw march through

may, but -- and that july has been down even from what we saw in june but if you're looking at this july versus last july, trading has been much, much stronger in terms of the volume that's out there 10.7 billion shares for all the changes, equity trading for july so far 50% above the average of 7 billion from last july so significantly more trading than you would have seen a year ago but down from the heights when there was really a panic in the markets. >> and we've got this tech trade with robin hood type investors and all the excitement with the day trading returning to some extent, too. that we have to factor in. they're out there. there's no doubt in my mind and i don't know -- we said is that great? democratizing the stock market for everyone or is it a sign of, wow, everybody is playing in this you know, sometimes you're getting into the mature phase of

something. in covid -- you want everybody to be investors? >> yeah, yeah, you do. >> i don't know you want them trading too actively but you want everybody being investors and having a piece in the american companies. >> you don't know if you want them buying hertz at 10 a.m. and selling it at 2:30 maybe you do you can't do draft kings u.s. reporting a record 77,000 new coronavirus infections yesterday. that's according to reuters. as cases surged, we heard additional pessimism about whether the economy can stage that much hope for a v-shaped recovery joining us for a special interview, mario gabelli, chairman and ceo of gamco investors. mario, do you have hope that the economy can look like some sort of v or are your hopes not high in that regard and you think it's going to be a you

we've heard it described as a w. where are you, mario >> joe, that's a good question i look at a global economy, okay the world is 84 there wirillion. the economy will be down but next year will be up i'm looking for what you call a w with a swoosh at the end and trying not to suppress it and keep the liquidity going so the economy will grow better but slower beyond 2021 and the market will discount that and has been doing that. the big wild card in the market is margins and secondly, joe, taxes. then, third, you're not going to buy back as much stock because it's politically wrong until after the election you'll be selling stock. that's it. the market, you know, will do what it wants to do and volatility is there and it will

continue. >> do you think the market is telling us anything about the election senate, president, otherwise >> come on, we've got 105 days to go or whatever the day is and i'm not sure that the final vote will be in at that time though i don't think the hanging chads will be there again. >> it will be the hanging postmarks if it's all mail-in stuff. >> exactly. >> so the things that you're describing, mario, you didn't immediately say the number of new covid cases in texas is everything is what you're keying off of >> well, come on i love texas and i love the free market on the other side of the coin, we're going to have a vaccine at some point we've proved that back in 1920 and not necessarily in the 1300s but, joe, yes. california -- california is 3.2% of the world's gdp that's bigger than germany and bigger than india. to a degree they have a

lockdown, you'll have an air pocket such is life you'll get past this wear a mask. >> we constantly, you know, try to walk the line between being cold and callous and talking about financial markets and money and also being sensitive to the human tragedy of this pandemic, but what we're trying to do as a financial network is give people the best possible future for themselves and their families based on how they navigate the market. so that's why we do it sometimes, but even listening to you it sounds like you're blowing off the entire covid crisis and saying i'm looking through this and we just need to be realistic >> no, come on, you can't blow off a crisis when half a million people have died, but let's talk about the next ten years, okay what's going to help the planet? what's going to help people? what's the potential for innovation that will be

unleashed? that's what we're focusing on. we're looking at things with a microscope like you are short term we're looking at a telescope, how good is good how bad is bad what is good then in the digital world we're living in, like the industrial world of 100 years ago, what companies will flourish and what new ideas and innovations will come on a planet, what are the democrats doing and republicans? england was project speed. infrastructure roads, bridges, internet to the consumer in rural america, things like that you know, there are companies that participate in this and that's what we're buying. >> all right >> then renewable energy, joe. >> you have a great list no one's better at just -- because you get so excited about the picks that you make and the businesses they're in. that's why you're worth a

gazillion dollars. >> yeah, yeah, going back on your netflix previous to that, joe, someone wrote, and it was me, 40 years ago, give the consumer what they want, when they want be it, at the lowest possible price and then make money doing it the same thing with ra rds to our planet, with regards to people and figure it out >> give us some. so you like -- >> well -- >> -- still like netflix >> let's go back to the planet and look at renewable energy whoever is elected is going to focus on wind, solar and then you need transmission, you need ballot ri storage and you need cyber security so companies like -- really simple company, which i happened to visit in february in florida, next air energy has a company called next air energy partners. that's where they're putting their development projects in. you have a company in madrid called ibidrola, ibe

siemens gamessa. i like a company called yvon grid they're going to do some financial engineering. in the infrastructure, joe, roads, bridges the internet how do we get speed? how does comcast do well in the cable world with xfinity how does charter do that as part of charter, tom does a great job. we look at financial engineering. in the entertainment world, you mentioned netflixment don't ignore disney, peacock i paid $7. you paid adding three zeroes who is providing the content if you looked at netflix with the microscope, they had more amortization in the second quarter than they had film content spend. so who is making content and

where can you buy it globally? those are simple things. >> yeah. keep going what other things? i mean, how early were you on the whole -- i always go back to that you knew we were going to fall in love with our pets and that entire -- i mean, you've got other big themes like that that was 20 years ago when you told me about that and it's done nothing but go up, up, up. >> you're talking about body parts. the aging population you wanted more hips, more knees, glasses, but elective surgery was shut down all of a sudden that's coming back and it's sad. some people who had some cancers couldn't get to the doctor, blah, blah, blah however, when you look at every candidate wants to have a product that helps the planet so tesla. okay what does that mean? right now, joe, we have in the world 1.3 billion cars in the united states, 260 million. in 2025 you're going to produce 100 million cars in the world.

in the united states you'll produce 20 million the electric vehicle is going to be 2 and 3 million you'll have 5 million in hybrid, electric vehicles. how do i participate in this right now the answer is you buy retailers who sell parts because the age of the cars is getting older. so there's companies like autozone, o'reillys, advance auto parts that are doing a good job at this and at a price we'll buy them. >> we're going to go, mario. i bet i'll say keep going and you could get us to nine easy. >> joe, it's always good to say hello to becky and you. >> i miss you. i miss you. >> we missed each other in omaha. >> i know. it's been far too long we need you on more frequently far too long >> we've got a great picture of you, mario we couldndon't need you live.

>> joe, i'm like benjamin button i'm going to have red hair in the next year or two. >> that sounds good. i have two red heads i have two red heads -- not at home i have two red heads no, no -- kids kids kids. >> anyway -- >> kids. >> your children >> yeah, my children yes. positive thanks, mario. >> just to be clear. >> becky all right. when we come back, an interview with the white house's coronavirus task force testing czar we're going to speak with admiral brett jarar as the u.s. sets a new record for confirmed covid-19 cases. as we head to a break, take a look at shares of blackrock which earlier beat on the top and bottom lines last hour ceo larry fink spelled out the divergence in the economy that the coronavirus has created. large corporations have been able to fare basically better

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don't want to go into the weekend with a sour note the nasdaq could turn positive we'll see. in the meantime, the head of testing for the white house coronavirus task force says that turnaround time for tests continues to be an issue, but even as cases surge across the country, he also says authorities are getting ready to issue guidance on reducing unnecessary tests. joining us right now to tell us what that means is admiral brett jerwah he is assistant secretary at the department of health and human services thanks for being with us today. >> it's great to be with you this morning >> there is so much confusion out there about testing and anecdotally so many complaints from people who are in some of these hot zone areas saying they are waiting a week, up to two weeks to try to get their test results back seems like there's lots of testing but maybe it's not being done in the best possible

places how do you fix that? what are our plans >> thank you for asking that we're doing an historic amount of testing we've done over 46 million tests. yesterday we were over 800,000 the data you get about lag times, that's talking about half of the tests that we do and i'll talk about that. the other half we do is point of care within 15 minutes or within hospitals that have an eight hour or 12 hour or 16-hour turn around the big commercial labs are reaching saturation, we know that, but the average turnaround time in the country is still a little bit over three days with a very tight standard deviation. yes, there are outliers, we know that some people do wait seven, ten days those are really rare outliers we're still around three days. we're going to reduce that by doing a lot of things, like pool testing, increasing point of care we announced every single point of care facility will get those

tests. >> i guess it's not where we might have assumed we would be months ago if you were kind of planning things out and maybe part of that is that it seems like we're going to need a lot more tests than we may have anticipated if you want to do things like get people back in the work force, there are a lot of workplaces doing regular testing so they can ensure their facilities are safe and their staff are safe a lot of schools are talking about doing this if you have schools, not only colleges and universities trying to do this but also potentially other schools, lower education schools trying to get out there and do it, it seems like the demapped for testing is only going to go up and up and up until we get to the point where we develop a vaccine or a cure >> you're right. we are planning for that we know that the demand for testing can be infinite. in the ideal world everybody will get a test every day and it would be free, you'd have the results immediately.

we're not going to get to that point. we know we need to scale that testing. by september particularly with pooling, you know, we will have the capability of doing 100 million tests per month and that's a really good thing we have a lot of things going. point of care is going to be an increasing share of the market we expect probably half the testing to be point of care as we move into the fall, particularly with recent approvals. and things like pooling for surveillance in colleges and universities are really the way that we need to approach this. we have a solid plan to get there. >> should the government, the federal government, be taking more control in determining who gets what testing when simply because if you're always going to have more demand then there are resources for it inevitably what happens is the wealthiest areas, the wealthiest people get to have the tests whenever they want i coughed today so i'm going to go have a test maybe that's not the best way of allowing the market to do its

work when you are dealing with a pandemic like this. >> we have to be flexible, and this is the reason early on we had a very tight limitation of testing so we were really dealing with only those who were symptomatic in the hospital or health care workers. now it's very, very important that we actually test those who are asymptomatic just feeling like you want to go get a test is really not the best strategy, but we know that most of the spread are from asymptomatic people, particularly young adults. so you've got to cast a wide net, and i think we're able to do that. when i talk about unnecessary testing, we know that there's a lot of people who are being asked to retest them selves at the end of their illness some people are getting tested four, five, six times. that's really unnecessary. according to the guidelines, if you're ten days sips the onset of your illness and at least three days asymptomatic, you're fine you're not going to shed the virus, you can go back

whoever has the flu, you never go back and get tested two or three times for the flu. we need to decrease those tests but we need to allow asymptomatic people to be tested. >> i get it though you're right it's not the flu i don't worry ten days after getting the flu the thought that if i see my mother, i'm going to kill her this is a different scenario and, again, just back to this idea, i don't know who you put in priority and who you don't. the only way we can do contact tracing is if everyone gets their test results back in a timely manner. even three days is interestingy and there are a lot of people who won't stay home and do what you're told to do. i've seen it from people who are getting the tests, waiting for the results and not doing it. >> let me address a couple of things there is a natural course of getting over this virus. we know after seven or eight

days from the onset, you are not shedding the virus if you have the ten-day window, you are not going to hurt your mother or grandmother. it's not necessary to get retested in terms of turnaround time, i agree. we need to reduce it that's why half of our testing is 24 hours or point of care that's why we're moving point of care testing into nursing homes. that's why we're doing all of the things with pooling. but the reality is right now if you send to a large commercial lab, given where we are, that turnaround time is about three days we have to be precautionary during that period of time if you are at risk if you were at a big gathering, a lot of people have infection, whether that test is positive or not, you need to sit at home and isolate yourself to make sure you don't become ill wear a mask, avoid big gatherings, going to bars particularly in the red zones is not a good idea. we certainly support closing indoor bars and limiting

restaurants. if you wear a mask and do those things, we don't need to close the economy. we can keep the economy open, but we have to be absolutely disciplined and diligent about those simple measures and include hand washing in that wearing a mask, avoid gatherings and we're seeing that. we're seeing it in the sunbelt states we're seeing the early indicators that the outbreak is starting to become managed by the percent positive cases and the e.r. visits going down we have a long way to go, but i think we are turning this corner >> admiral, there has been a controversy that started because the government has now taken over at hhs, taken over the reporting from states and from hospitals talking about the caseload, the hospitalizations that used to go through cdc and cdc had a dashboard that made all of that information public the cdc stopped getting that information or at least giving out the information that they had through july 14th and there aren't new places where the

public can see what the government is gathering on that. when will we be able to see those numbers? i think transparency is very important so people feel like the numbers aren't being manipulated or withheld? >> right cdc is not separate from hhs we're all part of the same department i am a consumer of that data we have been absolutely transparent. we are committed to transparency and i am not absolutely certain when that's going to be back up publicly, but i know that's the philosophy of the department and we want the american people to know transparency is very, very important and critical i assure everyone it's going to be up as soon as possible. the cdc still gets the information and they can post that it's going to a new central place that will streamline all of the reporting and going to one spot i need that. this is synthesis of the data so i don't have a little piece in one place and a hundred other

places to go this is ultimately going to be better and we are committed to transparency. >> you think those are numbers we'll see in a week, a month, six months >> look, it's not going to be six months like i said, i'm not the chief technology officer here. i'm a consumer of that information. i get that information we do want it to be transparent, and i'm certain it will be transparent and posted soon. i can't tell you when, but it's not going to be a prolonged period of time because we want american people to know it. >> admiral, thank you very much. we appreciate your time today. >> you're welcome. coming up, a new read on housing starts one day after the average rate on a 30 year fixed mortgage went ayb 3% for the first time ever st tuned "squawk box" coming right back

coming up, braking down the data and june housing starts stay tuned, you're watching "squawk box" here on cnbc. stock slices.

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welcome back rick santelli there. live breaking news june housing doing pretty well up over 17%. 1,186,000. seasonally adjusted and permits, up a little over 2%. 1,000 seasonally adjusted annualized units 1.296 million. yesterday we learned that

mortgages with 50 years of recordkeeping on the 30 year, the long mortgage fixed 30 years under 3% i personally know three different people closing on houses today there's definitely a fire going on in housing no matter where you look and with the interest rate not only very low volatility in general, just think about it this way, ten year note yields are approaching four weeks of closing in the 60s, meaning somewhere between 61 and 69 basis points japanese government bonds, they trade by appointment the federal reserve and central banks taking a lot of volatility out of the interest rate complex. that certainly works in favor of housing. joe, back to you. >> rick, thanks. let's bring in diana olick and steve liesman. steve, to you first. >> reporter: you know, rick makes a really important point here, that housing has been one of the bright spots, and that's unlike the last downturn when housing was part of the reason

we got into the great financial crisis housing was largely unresponsive to fed policy. and here with mortgage rates lower and we don't have a housing bubble, in fact, you could argue that housing never really recovered certainly if you look at the chart of housing starts going back to 2007, 2006, we never got back to the level that we hit. we had an over supply of housing and then that's become just an issue of people want a change in tastes as well what i do find interesting here is multi-family is down, and there may be an issue here of changing tastes that's worth talking about. people may not want to live in the cities and there could be a premium placed on suburban homes. housing will help us get out of this along with defeating the virus and getting people back to work, joe. >> all right let's go over to diana >> reporter: well, joe, i think these are good numbers

i would have liked to have seen a little better especially in the permits. when you break it down to single family versus multi-family we saw multi-family down that tends to be a more volatile number we are seeing single family permits popped 11.8% month to month. that's fantastic still down a year ago. we talk about all of this demand that we're seeing. we saw builder sentiment right back up to where it was in march. they reported that yesterday we have this lack of supply and the builders are telling us, you know, because they shut down in march and april, it's been very difficult for them to ramp up production again they have high costs for land, labor, especially materials. lumber prices are at a two-year high because the lumber mills shut down again. that's why when you go deep into the data and you look into the number of houses that are under construction right now that have already been permitted and started, it is down, both month to month and year over year. that's the supply that we're looking for because there's so much demand. you have to get the builders ramped up faster they are up against tough

hurdles in that. >> hey, joe? >> yeah, go ahead, steve. >> reporter: i want to ask diana a question i did some housing construction in my day. it strikes me that housing construction is perhaps a place that people can turn to and work safely so, diana, i'm wondering with the resurgence in the south and southwest, do you expect these numbers to fall off or do you expect the builders to keep building despite the resurgence? >> reporter: well, that's a good question look, we are seeing the trouble. we talked to a builder yesterday who said they're having lumber issues because at the lumber yards and productions it's a lot harder to produce lumber when you're doing social distancing behind me here they're all wearing masks mostly up there. the larger construction sites are working. construction was deemed an essential activity even when we shut down back in march and april, but it is slowing down production, surely and it's going to be a problem

for builders because we're seeing so much demand. they want to get it out there and they can't build it fast enough. >> rick, these people are buying out in the burbs >> reporter: yeah, absolutely. i think it's pretty interesting. it's a lot of young people a lot of first-time home buyers, friends of my kids, and i think it's really pretty interesting they're looking at the interest rate side as a big opportunity and they're thinking that the coronavirus -- believe me, young people are very concerned about it even though i know we read a lot of stories that they're all out at bars with no masks. the young people i know are concerned, but they see that that chapter isn't going to last forever and they're really looking at this as an opportunity to make their claim into, you know, one of the great things about being an american, owning your own home >> wow diana, i just -- out of the -- all the ways to buy a house right now in terms of mortgage, what's the best, in your view, the best way to do it at this

point? it hasn't been 30-year for a while, has it? i haven't done a 30-year in a while. where is the best value? and i guess you have to assume rates aren't headed up any time soon >> reporter: no. i mean, you're looking at record low mortgage rates across the board. if you are looking at the 30-year, you want to be safe, you don't want rates to go up, that's a great one to do you are seeing people going into other products, a 10-year a.r.m. because they don't expect the rates to go up you can get the fix on the 7 to 10-year a.r.m. and get the lower rate when you look at the number, the vast majority of people are going in for the 30-year fix, that security. they're staying in their homes longer you think about it, was i going to do a 30-year fix? people are saying, i want to stay put i want to stay where i am. the length of time people are staying in their homes now is much longer than it has been

historically. >> all right we're going to steve did you change did you get into a construction outfit or something like that? didn't you have a tie on what happened? >> reporter: no. at the cape cod bureau, joe, the rule on friday is casual friday. the bureau chief mandated that no ties on friday. >> all right and you say you had some -- what did you build, a bird house, tree house you built some houses? what are you referring to? >> i worked a couple summers on a construction crew. they wouldn't let me build anything but i could demolish things i wasn't allowed to use -- i could just swng a sledge hammer, which is incredibly cathartic. >> that's because you and weir were out -- god knows what you two were doing and they didn't want you doing anything important building a house upside down or something anyway -- >> reporter: my wife doesn't let me fix anything around the house. i can destroy things. >> god, i want to be handy so bad, you know what i mean? >> reporter: i know, me too. >> no way. no way

it's impossible. i mean, bad. anyway, okay thanks, everyone for more on the housing market, and this is interesting because tendai kafiza, chief economist for lending tree more to go on the down side on mortgage rates because of where the 10-year is what would be your terminal yield projection to wait for >> yeah. so what's been happening is that we've seen this big gap open up and right now it's at 235 basis points before covid it was at 170 since the fed announced the unlimited buying back in march, we've seen a 30-basis point in that the full drop we can get is 65 to get back to where we are. that would be 2.3%. >> whoa. >> but i think we're going to easily get another 30 basis points over the next three or four months to take us to 2.7. >> you think that that is

likely so then people don't need to rush right now if they're thinking about doing this? >> yeah. i think if we continue the trajectory we have seen since march, we can get to 270 230 is a bit of a longer stretch. i do think in this current environment, everything is uncertain. two parts to buying a house and getting a mortgage one part is the interest rate, that's very favor annual the other part is your income and employment that's very uncertain right now. so i think if you think that you can save money right now by refinancin refinancing, thinking of buying a house, you should go ahead and do it now. if you do lose a job, you're going to be out of luck. >> okay. that's amazing because you are basing some of this on prospects for people with the crisis depending on whether you're -- you know, if you're laid off, if you could be a permanent layoff. you have to think about all of those things if you are going into the borrowing market right now. those are all factors to consider >> yeah.

absolutely one thing that's very concerning right now is that the improvement that we've seen in the jobs market the past couple of months has been people coming off of temporary layoffs but if you look at permanent layoffs, those are actually going up what we're seeing is that the jobs crisis is migrating into more permanent jobs and it's migrating up the income chain, so to speak, into folks who would be potential home buyers we have a long way to go with the jobs crisis even if we get the health problem solved, which doesn't look like we're going to get it solved any time soon. >> housing starts are rebounding but you are still worried. housing market's in a precarious position what do you mean why? >> housing starts are rebounding pretty well. the new housing market is bouncing back. existing home market is not back we are down 30% from pre-covid and 27% year over year we have a big indplaes mortgage applications some of these are what i'm

calling speculative applications mortgage applications are up 20% year over year part of this is the really attractive rate environment. a lot of people are like, let me see if i can get approved. a lot of people are shopping for homes. the first thing a realtor asks you when you call them is have you been preapproved before they take their time to buy a house 23409 all of the mortgages are going to turn into home sales. >> we're all trying to help out here and think solutions and everything about our -- you know, so many things happening in 2020. you did an actual study for lending tree about black home buyers being more likely denied mortgages. we've had conversations that there are times where certain metrics could be softened for loans the way things are graded on a curve if you really want to try to, you know, say extend a hand up instead of a hand out. what's going on behind the scenes how do we fix this where are we currently in the environment for trying to get a

mortgage >> yeah. black home buyers, their denial rate is about twice the denial rate overall so, you know, if you are a black homeowner trying to buy a home, you're less likely to get approved from a mortgage this stems from the big gap in net income or net worth or income inequality that we have across the races in the united states all of that, of course, stems from hundreds of years, 400 years of racism and discrimination which shows up in this income disparate. so really we need to close that income gap we need to close that gap and probably the easiest or most direct way to do that is getting increased attention these days. >> or perhaps more lenders that have access to funds in minority neighborhoods? there's different ways to try to handle this, i guess

it's something obviously that you just gave the facts so it is the way it is. there has to be some way to free things up it seems like. we appreciate it we hope to see you again at some point in the future not too far. >> great thanks for having me. >> okay. you're welcome becky. joe, have you transitioned to a 30-year fixed yet >> not doing it. not going to do it i've got a 7-year something or other. 7 year leg, a.r.m. >> adjusted? >> do you think i should >> i don't know. i got -- i refinanced a few months ago. >> so low. >> really good >> if you don't go 30 years your actual -- you know the monthly payment. >> yeah. >> i don't know. >> you're not going anywhere >> no, i'm not don't i know it. i know stuck. >> all right when we come back, much more on the markets as we get set to

close out a divergent week for the major indexes. the dow and s&p both tracking their third positive week in a row but the nasdaq, it's lagging a little bit that's unusual been leading the week so long and it's down 1.3% it is on pace to snap a two-week winning streak right now as we head to break, take a look at the major cruise line stocks. the cdc extended a no sail order to the industry through september. that was set to expire on july 24th those stocks bounce around a lot but they're down 2.4%. ayrnival down 1% st tuned, you're watching "squawk box" right here on cnbc. apps are used everywhere...

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looking at the futures having picked up. the dow is now in positive territory. we started out in negative territory. s&p futures up by 5 and the nasdaq hanging in just below by the flat line down by 4.5. joe? something going on there are some things, becky looking around "squawk box," the studio -- >> a person -- >> the studio in times square no longer packed with people but we have noticed a little pickup in activity so we decided to use our location to gauge the recovery here's what times square liked on the morning of march 23rd that was the day the markets ended up hitting their lows of this pandemic. at least so far. you can see what things look like right now >> still not happening >> times square. >> no, not times square like, that's for sure. >> yeah. >> doesn't look like vanilla sky

anymore. you know. >> or i am legend, god help us >> no. >> that's what i was worried about. like i said, we do have our falael truck out here. >> oh, my gosh, here comes seven cars seven, eight, nine, ten, 11. >> people crossing the street. >> more people than what you can see right there. there you go that's a little more representative. >> there's 11 cars i just saw go by. >> and there's a line outside of this -- mack, what does he have? it all looks fattening from here, right? i would -- i'm hungry. >> and delicious. >> yeah, it does look good we don't do that have you waited in that line >> no. >> all right okay when we come back, jim cramer will join us we'll get his first take on the friday trading day ahead and then the stocks you need to watch in just over a half an hour when the opening bell rings

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last hour on "squawk box" black rock ceo larry fink laid out one of the current challenges that he sees for investors trying to navigate a contradictory set of market signals. >> at this time we are -- we are witnessing a very uneven economy and at the same time, though, investors sold large pools of second wits in the first quarter and then we had this big rebound and, you know, year to date there has been net outflows and

equities in front of this big equity rally we have seen. investors are scrambling looking to where to put their money. >> and then, jim, at cnbc headquarters we had mario on and, i mean, i let him loose and he just went off on individual exciting businesses in his view that he just sees -- i guess he is looking out a year, two, three years in advance and just saying these are all businesses that are going to thrive and i think that's what floats his boat, right? >> well, look, i think, joe, your whole show has been devoted to what i like which is that if we just think about what's going to happen when the pandemic is over, we know that there are a lot of companies that will do very well, i thought that larry's comments were -- larry is so thoughtful about everything, but he's actually thinking about esg again because that's going to be what happens. we're going to return to what we were talking about, but a lot of people baled and and people have

to come back and have tomorrow could back and buy things like what mario is talking about because those companies are virtual ever greens. i love the attitude of the show which is the attitude is not of hope but of what will happen when this is over. >> right a lot of netflix -- we talked about that assel and i haven't seen you tweet about that at this point i mean, netflix, can you believe -- we could have bought that at, what, jim. >> oh, geez. >> comcast we could have bought it for $5 billion, right >> i thought the quarter was great. if you actually listened to what reed said, he's talk being a ten-year plan. i think there's a lot of quick draw mcgraws who blew the stock out because they thought it was really meaningful, that the company said it was all pull through. that's no different from the pantry food story, people bolted, like clorox, they bolted and then sold clorox at 180 on comments that were conservative

and left 50 points on the table. i think if you are reacting, selling it down 37, you're probably thinking, wow, i could have sold it down 50, thank heavens. i don't know actually watch the call because it's a watchable call and read the letter and you are going to say to yourself, why did i do that this company is just brilliant so, yeah, i was doing -- answering to some day traders this morning on twitter, i've got to go back and talk about why i like netflix. >> answering, huh, not blocking? blocked a few and answer a few jimmy chill doesn't block anymore? >> jimmy chill does some blocking >> blocking and tackling >> look, anybody who actually says words that we know are offensive i block, but i welcome people who day trade and want to make money i thought becky had some great points this morning about we want people in, we don't want to criticize what they're doing as much as we want them in, so i'm trying to encourage people to be in the robin hood cohort because

what they will do is they will realize this works, this doesn't work, maybe you should end up owning a fractional some zon down 10%. >> if someone says why are you still on tv am i allowed to block them even though there's no curse words because i did. >> i think you have to explain to them. >> huh >> first you look at their name and it's usually like doc johns 53 and you have to say, geez, why did your mom name you doc johns? >> why don't you have a picture. what is that outline >> yeah. >> why don't you have a follower no, you don't. >> exactly there are some people who just joined to be able to heckle you. >> they do they do. >> they should go buy stocks i don't care what i don't like is when people say something about how you're all washed up and i watch you every day and you a're so washe up wait a second, why are you watching me every day if i'm washed up. >> i know. i love driving people crazy.

don't watch. thanks, jim. >> thank you guys, have a great weekend. >> you, too. becky gets her happy birthdays, that's all you get. >> no, i get my share. usually it's not why are you on tv, it's usually why are you on tva-hole and then you have a reason to block them. >> the european supermarket chain, royal a-hold, right >> exactly it was a busy week for earnings and it's going to be even busier next week, ibm, coke, microsoft and tesla are a few of the big names we are going to be hearing from with analyst estimates all over the place it's hard to know what to expect, where to invest or most importantly what kind of guidance these companies will be giving us, joining us to talk about that is joe taranova, senior managing director, a cnbc director, our friend who we haven't seen in forever. great to see you, joe he. >> great to see you, too, becky

and happy birthday one day in advance. >> thank you i appreciate it. let's talk about some of the names that you're long because i was looking through the list and it's interesting, you've got some stocks like microsoft which is reporting next week and can i have done so well and been on this tear, but you're also long a lot of the financials, names like goldman sachs, jpmorgan, morgan stanley and those are some of the stocks that have not gotten the love lately how do you describe your investing sentiment at this point or what you really think is working >> well, in the last five days financials have actually outperformed, technology is down 1% as a sector in the last five days, financials are up 8%, jpmorgan, goldman sachs, morgan stanley are posting 9 to 10 percent returns over the last few days in the case of jpmorgan it's clearly best in breed and they have utilized technology and that's being very advantageous

right now for them to connect with their customers morgan stanley and goldman sachs is about the trading environment and you saw that this morning with the results that black rock is posting we've never had volatility as high as it is with the s&p also at a very high price so i think the active management trading environment is going to remain a very favorable and that's why i have allocations towards goldman sachs and morgan stanley and i'm very happy with this week. becky, we have a chance here if we're able to close the s&p above 3231, that will be the first weekly close where the s&p has closed higher on the year since the week in february when we made the all time high. >> are those trade secrets on that white board behind you? >> so i've been keeping a journal as this crisis from covid-19 has unfolded and i keep a technical chart, i keep track of the debt markets, i keep my

positions and then over my other shoulder those are the numbers, sports numbers of my children which i have retired >> i love that that is really good. love the sports numbers. joe, quickly, what do you want to hear quickly from the companies that are reporting >> well, microsoft clearly is the big one. i think technology unfortunately there is an overconcentration, we kind of need to relax that overconcentration. these are the very important positions. everyone is long so the expectations are incredibly high. don't be surprised by pull backs in these stocks, you're probably going to get them. i wouldn't jump right into them if you are not in them, but it will be a pause that ultimately will refresh for technology. >> joe, buddy, great to see you. thank you for joining us and we will talk to you soon. j joe, have a great weekend. >> you, too. >> quail better rise to the challenge tomorrow i don't want you cooking, cleaning, nothing. it will be great to be there

with all the little quick quails for your birthday. >> i just want to hang out in the family that's it. >> happy birthday. >> it's going to be great. thank you very much, joe you guys, everybody, have a great weekend, we will see you back here on monday, right now it's time for "squawk on the street." ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber live from separate locations futures are steady to cap what has been a wild week we're going to watch the contest between growth and value as threat flicks guidance disappoints last night and as the u.s. smashes through its record for daily covid case growth, 75,000 new cases oil 4.5, ten year 60 basis points jim, we have had it all this week, banks, netflix, vaccine news, fed speak. what are