>> it is 5:00 a.m. in atlanta georgia. here's your top 5 at 5 what will more than 100 major companies say about the american economy going forward? well you're going to find out this week. the clock is ticking in d.c. as congress gets back to work on the next round of economic stimulus first texas and florida and now another state is warning it's cases are trending, quote, the wrong direction. facebook under fire once again yet another major ad reportedly slashing spending on the social network and amazon shares making

a little history most of them good. maybe one bad way. it is your rbi it's ahead right here on worldwide exchange on cnbc well, good monday morning and good afternoon and good evening. thank you for starting your week with us here on worldwide exchange on cnbc and here's how your money and the global markets are setting up there monday stock futures are lower and they come off their lows by about 100 points remember very volatile at this hour particularly in the summer. now in regard to the market the dow and the s&p coming off their third straight week of gains the nasdaq though, it fell partly to blame for technology and probably the theme to watch is big tech. it's amazon. amazon seeing the first down week much more on the rbi i don't want to give too much

away it wasn't just amazon dragging down technology. the question that investors have is is the work from home or state at home trade trying to beginning to wind down they took a pretty big hit last week something to watch perhaps unwinding some of the big momentum players in recent weeks like zoom and cloud strike and others one continued winner is bio tech as shares of mederna and more rallied on development for treatment of vaccines and by the way we have two guests on just that topic and today and also a few later on this week all right. you're probably saying why should i watch bond yields because we found out last week that inflation is nonexistent. that could be good

and all of this will be the backdrop for what will be a very busy week for earnings 78 s&p 500 companies set for reporting, intel, american express, verizon mostly green arrows in asia overnight in europe. london with your trade and your top stories. take it away >> it's been a roller coaster morning already. we opened up in negative territory. and we now crossed into positive territory and the stoxx 600 trading about 30 basis points higher we have the eu leaders in brussels to try to decide the details of 750 billion in recovery fund.

and we're expecting trial data to come through and university of oxford and data from clinical trials and medical journals and vaccine hopes filtering as well. behind this 30 basis point rise. german french and italian market here in the u.k. we're still trading in negative territory but in the last half an hour or so, positive momentum is certainly coming together back to you. >> thank you very much have a good day. >> back home here in the states congress is back to work today both sides are squarely focused on getting a new round of economic stimulus passed all be it perhaps very different looks. cases continue to rise >> the u.s. did report some

64,000 new coronavirus cases on sunday florida, texas, and california continue to lead infection tallies with florida reporting more than 10,000 new cases for a fifth straight day on sunday hospitalization in the sunshine state now also on the rise as of sunday, 49 state hospitals have zero available icu beds according to the health care office deaths are still trending down though going in the wrong direction it's thus far resisted calls for a statewide mask order but says he is not ruling it out as a total number of cases there pushed past the 73,000 mark. all of this as congress gets back to work this week as you pointed out. expected to begin debate on a new trillion dollar plus stimulus package that could address state and local government aid as well as the

enhanced unemployment benefits due to expire at the end of the month. the package could now be $1.5 trillion or more. for his part president trump says he will not sign the bill unless there's a payroll tax cut that was previously rejected by congress i'll send things back over to you. >> well, the drama and the debate over the stimulus package however the size should be something to watch we'll see you in a few minutes literally. thanks now back to the markets and your money and stimulus talks in washington getting underway and your next guest says republicans and democrats have an incentive to get a deal done although it might look different on either side and stocks faced further upside we're joined by mark, the global chief investment officer good to chat with you on a monday

>> there's only one thing that the stock market was worried about, maybe we have a little easier work. there's a few things going on but certainly the fact that he believed both sides have some incentives to have further stimulus and it's an important point for the markets. just like this stimulus and this european recovery fund is important as well, in part because as we move down the track that greater liquidity in the market can expand market multiples even further from here but i think that, you know, the market has moved a lot and will continue to move in our view on this virus news and how that is going and there too we see some signs for optimism

well, without getting into the medical data, we're going in the wrong direction because cases are going way up but then i can find others that will say well the good news is the most important metric. fatalities is coming down in most places. florida had 9 fatalities on july 18th versus 96 fatalities on july 8th so that's the most optimistic. what specifically do you look at because you can really take the data anyway you want if you get my point >> you're right and i'm not an epidemiologist and certainly it's a terrible disease and methods have to be taken to mitigate that but there is some data that you can look at but just think about this for a second we learned a lot about this

disease since marchand one of the things we learned was that there were many people that were asymptomatic and infected. and how it was so since march, because we learned that, we learned some what less infectious it's particularly working age population and we think that is something that the market has begun to understand a little bit. >> we have doctors coming up later. how does that relate to the stock market and what our investors should be doing that are watching and thinking what should i do with my money? >> well, i think the first thing

is that the measures to mitigate the virus have to be more so some combination of wearing masks or social distancing or the increasing number of people in our cities that have already had this disease have an impact and then you have that better news about either to help with the disease and of course the more people that had the disease that passed through the health care system and fewer people that potentially and also you look at the data however you want but there is the hospitalization rate that is something of the social gate that we faced when hospitals fill up and we are seeing in it's early days but some of the rate of hospitalizations in places like arizona and texas kind of started to slow again.

>> and thank you very much >> appreciate it >> when we come back, worldwide exchange forget politics how business is taking a lead in the mask mandates. plus another big spender pulling ads from facebook. i'll tell you who and why. a race for a vaccine two investors are telling their clients about where to invest around the hope that we all have for a vaccine. dow futures down 41. we're just getting started 5:11 in the morning. wep cfeofofe. 're back right after this. save hundreds on your wireless bill

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welcome back another big advertiser hitting the pause button on facebook start to require you to wear a mask nationwide. and dom is back with more of those stories. >> disney reportedly slashed it's ad spending on facebook amid the growing boycott by major brands upset by how the social media giant is handling hate speech and offensive content on the platforms it was the biggest u.s.

advertiser on facebookin the first half of this year. facebook shares off about 1% in the premarket trade right now. ebay is in advanced talks to sell it's classified ads unit as it focussing on its core marketplace business and the business is expected to sell for roughly $8 billion. the bill could be announced soonts tod in the shares today walmart will require all customers to wear a mask or face coverings of some sort in all walmart and sams club stores starting today face coverings have already been required in 2-thirds of locations. they were there as part of a policy cvs will also require masks in all stores starting today as well brian, i'll send things back over to you. >> no, no, no. we're not done because i have two things to say to you one thing to say and one question are you ready? >> okay. >> number one, number one,

congratulations to you. >> thank you very much. >> on the addition another little baby. >> little jack lucas everybody is healthy and happy the baby is sleeping except i'm not sleeping because i'm with you right now. >> well, i'm right here with you, buddy i don't have a new baby but i'm right there with you so congratulations to you. all right. also, are you a custom mask guy or do you wear the medical mask. i ordered a mask that's skin colored and has a handlebar mustache and why not i want to make something of it >> i know i'm not a gas mask but i will tell you this, a lot of my favorite clothing plans have gone the way of making those custom masks so maybe the brands that you watch will make custom masks these days i will say that i get a lot of looks and a lot of of comments about the masks that i wear. more than anything else a lot of

folks are using them as an accessory. a piece to show their personality. like puttel a handlebar mustache on your mask >> if your masks look like your socks. >> thank you very much >> on deck, small businesses everywhere they are struggling to get back on their feet. we'll speak of one texas base small business owner and we're seeing not one real people, real business next

my name is christine payne, i'm an associate here at amazon. step onto the blue line, sir. this device is giving us an accurate temperature check. you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat.

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texas as well. so two small companies thank you for coming on cnbc i know that you're based there where the oil fields are you're dealing with the collapse of the shell boom. oil riggs down 700 the steepest, fastest drop that's ever seen let's talk about that side of the business first any sign of anything flattening out or coming back. >> absolutely. you're right riggs are down almost 75% year over year from last year to now however we're hearing that riggs may be coming back out and hopefully by the end of q-3 and q-4. that would be a plus last week and first time in many, many weeks probably i said at least 12 to 15 weeks there's a positive number of plus 9. >> wow, you guys are -- honestly, right now at least, a

triple w whammy. you and i both know 40 is not a long-term solution and the fact that 110 degrees now. how hard is it to run a business in texas right now. >> yeah. it's difficult obviously that's what we do this time of the year that we really are sending product out. you know, we are working with other companies. we are getting creative and sharing employees with people to offset costs we're sharing warehouse spaces everybody is just looking at what can they do to get creative to innovate to cut the fat out of of the business and survive >> by the way, it's spectacularly needed with some of these temperatures.

and record temperatures that we're seeing you have your business well off and that kind of a future in the near term. and now maybe he or she is working two days a week for you. three days a week for somebody else and the multiple job is going to be an increasing sort of facet of business. and ooum talki-- and i'm talking about it four hours away. so those are not sharing employees other than myself. i'm in the hill country thursday, friday, saturday what i'm talking about is i have people that are in my shoes that own small businesses who for instance, i may have enough work for 2.5 employees and he may have enough work for 3.5 moi e

employees so we're sharing the half employee. so we're sharing employees with other service companies to help both of our bottom line. >> is the limo business able to operate now? are you still able to take some people around in the age of covid? >> sure. so that's an ever changing issue. we went at the beginning of covid. we went 8 weeks and we could not offer at all as a direct result of the shutdown that we have then we open back up and the wineries, our winery partners are amazing. they did an awesome job of re-signing their layout and most of them have tons of outdoor space. they open safely they're requiring social distancing and many of which were already for covid and would only allow 6, 8, or maybe 10 now most are doing that.

all of them are doing that. >> so we are able to open. we are running some tours. we're not operating that >> all right well, listen, do us a favor. we love to hear real stories, real business, real people you and i stay in touch get an update we'll see how you invest your team and your family also. >> take care >> covid-19 vaccine this year. her take on the latest and joins the facebook at boycott. right after this look here, it's your very own all-in-one

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wall street will be run by washington this week as everybody eyes another round of stimulus the question is how big will it be the race for a vaccine, major players lock down deals with governments to make sure when one is created and you can get it we'll layout the names to watch. a quest for a cure. >> and disney pulling the plug on the facebook ads but unlike a lot of other companies you're doing it fascinating story ahead on this monday july 20th this is worldwide exchange right here on cnbc

all right welcome or welcome back kick off your monday here's how futures are looking and they're off 50 points right now. they're coming back a little bit and fair value in the green so it has been a good run for the stocks and the dow and the s&p 500, they're on three week win streaks and nasdaq fell last week and seems to be rotation going on but overall pretty good for some of the industrial stocks take a look at bond yields the ten year yield isn't moving. so why are we looking at it. it's 0.62% so number one, you got some borrowers we reported getting mortgage rates below 3%. it's really incredible

but also keep this and we're also moving deeper into what's called negative real yields that's the nominal yield that's fallen by nearly half a percent in the last couple of weeks. why do we care well if you own hard assets like gold, maybe like silver, that would be very good for you because historically, not always but historically, negative real yields and to be good hard assets like gold it's up fractionally today and it's something to watch as inflation remains nonexistent. the coronavirus and race we all hope for a vaccine and 90 million doses of two possible vaccines.

to make 100 million doses of its potential vaccine all being developed in partnership in the university of oxford they are due out this morning. the street is expecting favorable antibiotic -- antibody responses. that is the latest move by a major drug maker to boost ca capabilities and director of therapeutics research and diversity the analyst. thank you for joining us first i'll begin with you. we just talked about what companies are doing to try to get a vaccine out. we got to make the vaccine first. how optimistic are you that one of these candidates. it's 13 major candidates around the world will work.

>> they will work. at least one will work but i think that the timing seems awfully optimist i would have thought that it would be somewhere mid 2021. and i would be very impressed if things were to happen sooner we are going to get some data soon but i think the gaining factor is going to be manufacturing and that's no easy task. >> and that's i think what they're trying to do right it's obviously they're being optimistic about the odds. they don't want to be caught off guard. let's say we get a viable candidate sooner than later because of modern technology and the genius of the scientist working on it. we need to be ready to get it around the world correct we need to for billions of people to get this. >> we should be aware of tremendous progress that we made we had probably more than 200

vaccine candidates in development now. we have 20 plus in clinical trial which is unbelievable for 6 months since we identified these bodies that's the good news the bad news is we don't yet know whether they're going to work and if one or two of them work then it's going to be a huge burden on the manufacturer to produce billions of doses so the irony here is that every one of those 20 yard manufacturers in clinical trials is having to scale up simultaneously so ultimately we know that 19 or maybe 15 of them won't need the factories that they're selling out. >> i'll stick with you on that those candidates are more than i thought. certainly which one or ones are you the most optimistic about. >> we had several classes of vaccines and companies such as

made moderna. they're really at the forefront and then we have manufacturers such as the astra zeneca group and those are synthetic viruss a little bit like gene therapy where they're reducing the volume to reduce the protein by delivering the virus and then there's the traditional manufacturers. and they're using traditional approaches and i think that there are four or five companies that are clearly in the lead but i also think that people should have relatively low expectations. this is going to be an sbe congratula process. we need to improve them overtime this is a journey not a one or two year journey. >> well, let's hope it sounds like you would mirror that sentiment about the time line

from a purely investment per speck tiff. >> do you think that investors have maybe gotten ahead of themselves, overpriced some of these companies based on the hopes of a vaccine >> there are many of them as a commercial proposition the best case is only two or three of them make it to market so arguably there are probably 17 very overvalued vaccine makers right now. >> so yes, i do think there is a lot of money being thrown at the sector and yes, most of them won't succeed. now the issue is which one and we're all still waiting for data and then manufacturing and distribution and it's going to be awhile before we really see it. >> let me ask you a different question and i'll stick with you.

we know they become trader favorites. they're moving up and down whenever there's a sniff of something. is there a company out there that you own they're simply not in the coronavirus headlines. referencing covid however i would say that we're more optimistic on the antibodies as treatments and companies like regeneron and other companies working on the products that were more likely to see success near term and then i think medical devices are looking for a come back and we

also own some of the manage care stocks as well all left, you know, because of that. >> and right now -- >> we understand that gilead is going to be out of stock in the first quarter. they'll probably be out of stock in the fourth quarter and what that actually means in revenue is that the first quarter of commercial sales they could sell a billion dollars of product at the price they recently announced. i think people will be happy to pay it when you see that sort of large number tends to get priced in to a certain extent and there's a lot of upside to gilead.

it's a discussion now with names coming in. we'll catch up with it too take care. disney deciding it's complicated with facebook as the company reportedly pulls it's ads from the company. first as we head to break, some of the other top corporate stories and national stories this morning, former vp joe biden holding a double digit lead nationally over president trump at least according to the new washington post abc news poll that poll is showing biden leads 55 to 40%. nfl players are demanding the lead clarify and strengthen protocols to ensure their health and safety amid the on going outbreak players including patrick

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welcome back and good morning. facebook's biggest u.s. advertiser pushing the pause button in what would be the latest set back for the company and the growing boycott by brands over how the social media giant handles hate speech and content on its platforms dom is back. >> this story keeps growing here now. this story broke in the wall street journal this past weekend. disney has reportedly slashed it's ad spending on facebook it joins hundreds of other companies that have paused ads on facebook including starbucks, ford and verizon as well just to name a few and antidefamation lead called on advertisers to have spending for july while some brands are pausing for longer, disney's time frame is unclear unlike other companies disney changed it's plans quitely instead of making a real public

announcement what is the potential impact research estimates that disney was facebook's top u.s. advertiser in the first half of this year as you can see here. last year it was number 2 behind home depot the journal says disney has ads for disney plus promoted he havely -- heavily on this year $210 million this year on ads for the streaming service through june hulu and other divisions as well that you can see here and that's a big name to watch. a big move there but also a small dent as facebook generates about $70 billion a year from ad revenue. $70 billion total so brian it may seem like a drop in the bucket still a big brand name joins the wall of brands that we just talked about putting the pause button on facebook and instagram spending back over to you.

>> all right thank you very much. let's talk more now about the story and bring in the editor in chief. stephanie, welcome back. what is this move by disney tell you? do you think it's a real long-term change >> i think it's a long-term change but i think that it's complicated. i think that certainly there's pressure on disney as there is on a lot of organizations to rethink their ad spending on facebook because of the hate speech issues but i suspect that there are lots of other forces at work here there's a reason why some of the other social platforms that have addressed hate speech on their platforms such as reddit and twitter are also being sort of swept up in this sort of pause in advertising and i suspect that in part because a lot of big advertisers are doing a total rethink of spending on these platforms.

the hate speech is certainly contributing factor but it was interesting that i had the opportunity to actually interview jack dorsey at a p&g event last week and it was interesting because this took place in the context of p&g announcing that it was going to be doing a feature film with ron howard this is a company with a huge ad spending budget and they have been slowly but surely walking away from traditional advertising. they have done television show and national geographic and a lot of experimentation and moving away from traditional platforms is happening at the same time that facebook is facing pressure. >> that may be the bigger long-term story from a corporate perspective which of course is obviously the social justice side you're going to do because it's the right thing to do. full stop. but when you're looking in five and ten years out, maybe it just

doesn't work we talk about the stuff around the dinner table there's a lot of question about whether or not this actually works. >> 100% and that effects you and me too they are certainly looking at every place that they're advertising and trying to figure out if there's a better way to reach consumers. consumers in particular. enterprise is bout what p&g announced now if any company knows how to tell stories directly to consumers it's disney if p&g is getting into the film business as a way of marketing itself surely disney has to say why are we spending money on other platforms when we are ourselves a platform this pause is compelling because any part of disney should be spending money right now it's disney plus. they are in a -- they are doing well but they are in a war with the netflix and amazon.

and that would be no question to take a pause in those areas. >> also in competition with peacock which is amazing and it is free and it just launched it available as for a week ago. we look at the longer terms and removing the bad and hateful content. i read that tiktok had 49 million videos removed due to hateful, offensive, there's a lot of bad stuff out there but local advertising is where facebook makes most of its money. it has come to sullivan's seafood shack done town.

>> as long as consumers find utility in these platforms and we have seen that they continue to visit facebook, twitter, youtube, tiktok, these are all platforms. consumers of different ages and demographics and as long as they're accruing eye balls there will be an opportunity for advertisers to take advantage of them the question is whether the big brands, the ones that dom mentioned in his report, the starbucks and unilever if they're going to continue to invest, you know, the hundreds of millions of dollars at the same level they have there will always be local advertisers. it's always going to be spot advertising.

>> a good discussion there maybe on facebook and disney we'll see where that relationship goes. thank you very much. >> take care. >> on deck, why shares of amazon are the highlight of this morning's rbi. >> what has it done to make it random or interesting. we're back right after this.

welcome back we have just been talking about the last couple of segments. they're upright now but jp morgan just moments ago downgrading the stock to neutral. they downgraded it to neutral from overweight so jp morgan chase, the analyst there saying they're really moving to the sidelines following the run this year the stock is up 385% year to

date well above other biotechnology companies. they called it an impressive run for a vaccine and the analyst wants to make clear that this downgrade has nothing to do with the expectation or optimism around a possible vaccine rather than the stock perhaps has simply gotten into fairly or slightly overvalued territory. that's my word and not theirs. we would look to add positions at a more attractive valuation downgrading to neutral still standing behind the stock and saying if you want to own it you might want to wait for it to pull down a little bit before committing new money that downgrade just crossed and not impacting the stock we're watching all day i'm sure. time now for the most random and interesting thing you'll hear all day. today it has to do with one single stock but it's a stock in a company that everybody knows and it is amazon and even as the overall markets have gone up in the last month, amazon has seen the tide go out lost 7% last week.

it also broke it's longest winning streak ever coming into last week. amazon was up. ten weeks in a row and it looks like it might be rolling over and according to etf database, amazon is in 338 etfs and it is a top 15 holding in 193 etfs you may own as goes amazon so goes the market we might find out. hopefully a little bit interesting. back down to the broader markets and futures, you can see they are down about 40 points right now. we have another very busy week ahead. earnings crossing and guidance crossing about 80 companies that are going to release their numbers

and their guidance and what they're going to say about america as well. so let's now bring in our guest. we're joined by sebastian. all right. so i'm not going to say earnings don't matter but earnings probably don't matter. it's the guidance certainly that matters. what is the most closely watched one or two metrics that you and your team will be paying attention to this week >> the earnings forecast are quite pessimistic so we're looking generally speaking at how numbers come out relative to expectations and we're asset aloe k allocators and the key question right now we're trying to sort out is are stocks overvalued we end up neutral between stocks and bonds and it's easy to think that stocks are in a bubble because they have run up 40% from the bottom.

but the earnings forecast are 45% year over year drop. so it's all about the push and play, the push and pull between what are good fundamentals but extremely high valuations for growth stocks and chen cheap valuations, but pretty poor fundamentals and are they the best domestic u.s. value sector right now? >> it's interesting. if you look at small caps on their own, they look expensive relative to history. and here is where the earnings numbers are very harded at least in the short run if you look at small caps relative to large cap, they're actually at an extreme in terms of how cheap they get, again,

relative to large gaps we're talking 98 or 99 in terms of how cheap they have been over the last 15 years. so when we look at small gaps, we look at an asset class that's the asset class of choice historically coming out of a market bottom. 9 out of the 10 last market bottom small caps have outperformed coming out of the bottom they have not this time around so it's this -- these coiled springs, these valuations that are at extremes and it's the same for value versus growth and then the big key question for asset aloe kay tos is are we going to see some sort of rotation into more cyclical stocks the way we're playing it is to neutralize our stocks versus bonds allocation and then add cyclicality under the hood so we end up with an overweight small cap position in this market. it gives us a horizon for a

recovery trade >> make the small caps a little bit bigger coming on and talk to you soon. >> have a great day and a great week thank you. >> it's amazing how fast it goes we got through a lot we'll see you tomorrow a lot more to do dow futures are down 65. we'lsee l you on tuesday morning. have a great day save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile.

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the clock is ticking, congress returns this week to work, i use that term loosely, on another round of economic

stimulus as enhanced unemployment aid set to expire in 11 days and nfl players speaking out calling for the league to explain what it plans to do to protect them and their families it's monday july 20th, 2020. squawk box begins right now. >> good morning, everybody welcome to squawk box on cnbc. i'm becky quick with joe kernan and andrew ross sorkin nasdaq was down last week. but that was the first time-out of the last three that it's been down and if you want to take a look at the treasury or equity markets stands this morning they are indicated off by 65 points that's actually better than we