we have learned is that we unemployment aid set to expire continue to spend and spend and in 11 days and nfl players speaking out calling for the spend. that becomes the question too. league to explain what it plans to do to protect them and their how much money can you pour into families it's monday july 20th, 2020. it when you're not raising taxes. >> it's where you raise the squawk box begins right now. taxes oo >> good morning, everybody welcome to squawk box on cnbc. if you have faster growth. >> we're going to try to find the balance. i'm becky quick with joe kernan what's the perfect point that's the question. and andrew ross sorkin >> in spite of your best, you know -- i see you asking these nasdaq was down last week. but that was the first time-out of the last three that it's been people -- down and if you want to take a >> we can do another look at the treasury or equity markets stands this morning they maybe i'll lighten up a little are indicated off by 65 points bit. that's actually better than we you just double down. were earlier this morning when

it was down by 100 points more than where it stands right now >> put it all in financial stocks when elizabeth warren was the nasdaq was off about 2.5 vice president >> i have been sceptical of the the shanghai composite rose more market as it is. nonetheless, we have other news than 3%. though to bring you this morning. we should probably get to it central banks held interest rates steady a transaction to talk about. over the weekend regulators raised the limit on how much they can invest in equity assets in an effort to break long-term funds into the market and it >> i should say it's according certainly worked at least for to the wall street journal today. >> let's take a look at the it says the deal could be announced as soon as today treasury market back here in the united states. right now i think the yield is the ebay unit similar to just around 0.6% for the ten craigslist operates primarily and a lot of us don't know about year i don't know if you saw that story over the weekend it primarily in canada and parts of the suggestion that part of the reason that you're seeing such a cap on treasury yields and banks europe and i can't claim to be an expert on it. i heard of it. i don't think that i've ever took in about $1.8 trillion in been on it myself. additional assets. people depositing more money >> that's also according to the into those banks journal this morning that's happened just since march the all stock deal would valuable at 10.$38 per shares. 11th

a lot of that excess money was then used to buy u.s. treasuries at 7.6% above friday's close and that in-turn is not only capping the yields in treasuries and pushing stocks higher. equities up. if you're looking for any sort of return you get forced into and then we should tell you over the equity markets as a result. the weekend, the wall street >> you wonder what the powder is journal reporting that disney on the sidelines slashed it's ad spending on facebook pretty suck stan disney was facebook's biggest pretty substantial people made that point u.s. advertiser in the first half of the year facing the boycott over the policing of hate speech on its platforms. disney has not made it clear confounding obviously. whether it is joining that boycott and if you recall a just having a conversation with number of the big media our supervising producer that we companies and this is -- maybe unusual guys, but a lot of big all know it's just about how many days to companies including comcast, our the election parent company have not apparently cut back on it or it's coming up on 100. become part of this boycott. >> coming up on 100 this interesting because of potentially i know the thursday right perspective that people have about the mainstream media or >> at this point it would be a hollywood and whatnot in terms of the issues but this is where clean sweep. maybe economics gets in the way.

a lot of these companies are streaming and they're trying to i got some stuff find new customers during the i got some mutual funds. i'm not ready to sit here if pandemic and because facebook is we're going to raise taxes on corporations, more than i a big platform they haven't usually sit here, but i mean, i walked away from it yet. think i'd have to -- but we'll see what it really >> so you're a seller. >> i think i'd have to think about what i should do if -- means. >> some lighter facebook news. this is a meme guys. and, you know -- >> are you thinking about that are you a seller if that's the mark zuckerberg went viral over case >> if biden gets elected and it's a democratic senate, i the weekend. on vacation with a healthy might be -- i might take a little off the table amount of sunscreen on his face. what if elizabeth warren is vice i think that's zinc is what he president, andrew? >> here's the question. is doing and got picked up on >> the most powerful vice twitter and was the subject of president in history they say, memes comparing to the joker and elizabeth warren would be. and that couldn't be good for mimes and other things financial markets. do you think i wear my swim shirts i'm always trying to stay out of the sun so i don't know. >> only 100 days out when do you my view is good. start to make the moves. good for mark zuckerberg >> orlando says it's a long track still. let's talk to him about this he says it's still a long track >> i get it. which i guess means that we >> i burn pretty easily.

don't know what's going to happen between now and then but >> it's whatever his name was. i mean, 100 days is not that far >> we have kidded about that in off. the past >> there's two questions, joe. and jim cramer said give him a if you're right. test just to make sure >> i'm not saying the polls are just so we're sure that he's right. >> and the markets would be right, you'd think that the mostly human markets would have already moved in that direction which they >> looks nice there. hadn't that either means they don't we'll tell you that much believe the polls or they don't so it's an electric surfboard. believe that if biden wins it's bad for the markets and then historically i would say -- i'd >> just put some video out for try to say this in the most one of these things. nonpartisan way possible but at least historically the markets have done better under democrats that's cool. and republicans. it's just true no matter how you look at it it's a controller. it controls how fast or slow you it's just the math. >> that's like trying to look at it in a complete vaccum go i don't know that's how it works. that's not assuming anything it's pretty cool. about congress >> i wanted to try it for a long time. >> do you know what i think, your core is important not only that a lot of times you which could be problematic

had the previous four years that something happens to cause whatever reason to make it even on a paddle board. >> it's just like a paddle board. it looked so easy and i tried easier it sunglasses because i hit the board so hard on the way down and flew off and then as you're >> for years and years and coming in, as you're coming in years. you and others didn't want to if there's waves, do not stand get people like president obama on the other side of the paddle credit because -- at the same board. >> there's the problem time i would look back at the you don't do it on the ocean bush years do it on the bay this is why it's so complicated. it's hard in the ocean >> okay. well, we can talk more about we'll see. >> if he's had an economics this in -- course at all you know that >> do it on the bay, the lake, probably a lot of regulation and then it's easy. much higher taxes probably isn't >> i don't know i think on shore a great formula for stronger with the little parasol drink economy. >> in the short-term not, 100% might be easy. on this week's squawk planner, another busy week for earnings not in the short-term. the question is whether this entire covid experience has been with s&p 500 companies set to a lesson in trying to create a open their books on a quarter. more resilient economy if you think there's going to be

pandemics every five or seven years which is what some people speculated, there's going to be at&t travelers and intel on more challenges ahead. sure, maybe you want a more thursday and american express resilient economy. and verizon on friday. it's hard to say how could that i am exhausted thinking about be better. all of those >> i've watched you. it's a relatively light week for i watched you evolve. data the highlight will be thursday's >> i've watched you evolve with weekly jobless claims report and some of the -- you're recent here we go, the vaccine news, questions to people and i can tell deep down you're worried it's important and it could be about raising corporate taxes. one way or another and we're expecting more detailed results from phase one trials. you can see you don't want to -- you're going every day and you're like people are looking at you and pointing at you and he's over there but i've seen you slowly come around to where it might not be a great idea to they have already begun but we raise corporate taxes. don't know much about the phase one results. >> what i said and i'll say it we can show whether it's safe again i think in the midst of a and whether it includes an immune response. pandemic when you're trying to have an economic recovery, if results are being published in you want to raise taxes you can the publication and it's going raise taxes but then you have to to come out sometime today spend a ton of money on some

kind of stimulus on the other end. i think one of the great lessons we don't know when post financial crisis was that there was such a move not to how can you not know anything. frankly lower taxes but to do all sorts of other things and had we not moved on taxes in >> a scientist that's published in the past on this. that way maybe things could have been easier. make a big deal about it if it i wouldn't necessarily advocate that we need to keep taxes low was a failure or do they do that >> we'd all like to have lower if it's generally good news or taxes. wouldn't you generally just put out the bad news. >> you'd have to do it either way if irelyd you'd still have to put it out that's the way it works. if people would repeat the experiment or something like that it doesn't work.

so i don't know when it's going to come. correct me if i'm wrong. it's over there in europe. so five hours. 5 or 6 >> i was wondering, in terms of how many -- i was listening to worldwide exchange earlier a great conversation with a couple of analysts there's about 200 candidates out there for one of the vaccines. obviously only a few of them are going to be brought to market. these analysts are saying you have a lot of these stocks that are incredibly overvalued at this point the market played up every single value it would be great to get multiple ones of these that work because you have such a huge global population that needs to be vaccinated you'd need to get it out and quickly but you're

not going to get 200 of them we have a lot of hopes riding on this but not every company is going to be successful. >> i saw another story about a 64-year-old that died like two days later it's awful reading about it. can i say one positive thing we have been watching the memorial, the great jack nicklaus tournament in columbus ohio john rahm number one in the world now. jack nicklaus and his wife had covid. >> oh, wow. >> jack is 80. jack is 80 his wife, i don't know if he's quite 80 but they're similar anyones. she was asymptomatic and he had a sore throat and a cough for a week. >> god bless. >> what's that >> god bless. >> very lucky and everything else i don't know if we hear about those stories. i just read about it 64-year-old guy. that doesn't happen with the flu

normally no problem with covid and we want to have him around obviously for as long as we possibly can very tough >> we're going to talk a lot more about coronavirus and where they stand there and on the vaccine front when we come back. an update on potential new covid had the spot states and later we'll talk to mark cuban about the stimulus set to expire at the end of the month and the nba restart. squawk box will be right back. this selenite grey is so pretty isn't it?

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18% of all tests come back positive in florida. meantime, texas reporting 7,300 new cases and the seven day average there positive test is at about 16% the ohio governor warning over the weekend that his states covid-19 cases are going in the wrong direction and he's not ruling it out as the total number of cases there push past 73,000 it could address state and local government and enhance unemployment benefits due to expire at the end of the month becky over to you. >> andrew, thank you. >> in the latest op-ed in the wall street journal, the former commissioner dives under the

disagreement the feud demonstrates the inadequacy of the efforts to prepare for a pandemic he joins us on the squawk newsline he's a cnbc contributor and serves on the boards of alumina and pfizer it's good to talk to you about the new op-ed that you have. >> thanks a lot. >> let's dive into this because this is an issue that we discussed a couple of times last week why these two agencies are feuding. what they're doing about it. how they're collecting information and i think probably pretty importantly what this means overall in terms of the strategy we take in the months to come. if things get worse here in the united states, are we prepared >> this has been a long standing dispute or discomfort between the administration and cdc from what i can glean talking to people on the inside there's been frustration with the cdc with terms of the inability to get timely

information and accurate information out of the agency. some of that is legitimate probably some of it is a little stretched. and told them that they wouldn't be able to provide that information until late august or september and that is when a decision was made to more fully takeaway data aggregation from cdc. cdc would still be involved in analyzing the data but they would no longer be the lead agency collecting the data i still think a preferable path would be trying to support the cdc. they would be the lead agency but we need to both collect and disseminate information. we're at a point where some hospitals are faxing in information to the agency. the agency needs to rebuild it's data systems and to the agencies credit, they have asked for resources for many years to do

that and so this has been something that's been recognized for a long time. >> the washington post had an article this weekend that said the white house is seeking to block billions of dollars for states to conduct testing and do contact tracing and then also additional money to go to the cdc and to be used internationally to try to fight this pandemic. the post said that this is creating problems even with republican senators at this point. what do you hear on this what do you think about this in terms of what should be done with the testing policy. should that be a national policy or should that be something where the states pick it up themselves. >> i talk to people on capitol hill and i think the funding is going to be there. congress is going to provide that funding including republicans. >> i think the white house and others in the administration have had some frustrations with the cdc.

and the agencies roll right now and it also reflects inability to come up with the plan and the funding bill would be a good place to try to come up with a different approach and they haven't been able to do that and the setting of a crisis to try to rebuild aspects of an agency that have them long ignored. that would be the prefer rabble way to go. >> it reveals that there are a lot of gaps in our preparedness. this isn't the new problem this has been building over the years and the intelligence community has been recommending in public documents for many years that we treat the risk of pandemics as a national security threat on the risk of weapons of mat mass destruction and cyberattacks so we don't have the ability to surge testing capacity

and the scale that we need into the fall particularly the biological drugs and we don't have the data systems that we need to collect and track the ebbs and flows of the epidemic caitlyn rivers has proposed the idea of a national travel service that would be in charge of collecting and disseminating information and analyzing it we don't have that kind of capability in the united states. >> what do we know so far? there's so many. this is not it, is it? or how does -- is it a more classic one or adenovirus? which one is this? >> there's been data released on it already that was encouraging i think with all, you know what

i would call a little bit, most people expecting the results to be positive. it's a phase one, phase two study but most people expect it to be positive so i think that the risk is to the down side here the editor in chief put out a very unusual tweet last night that was basically three words that seem to be in some positive news for the vaccine he said tomorrow so not the typical kind of tweet you see from the editor in chief of a major medical journal. >> that's crazy. is that almost -- >> is he a friend of elon musk. >> that almost seems like front running. >> go ahead, andrew. >> hey, doctor, i have two questions for you. one was what you made of this study that came out over the weekend, about 65,000 people looking at children and their

role as potential spreaders and the idea that between 10 and 19. if you're older than 10 years old you're no different than if you're 30, 40, or 50 years old in terms of your ability to spread it and if that's right, what that means of course for school openings and therefore the economy in the united states debate with teachers unions and all of it. >> so this was an exquisite study. they looked at about 60,000 contacts of around almost 4,000 people who were infected with covid and tracked how those infect people the cases went on to infect other people now they only followed symptomatic people and what it showed is kids age 10 from 19 children younger than that were less likely to infect other

household members. there was only a very small number of children so there were about 150 kids in all that had become symptomatic so what it suggests is that kids are less likely to become symptomatic from covid because of the number of kids in the study that were caught with covid. it might be behaviors. if your asymptomatic does that mean that you're less likely to spread that just means that the information i could take away is that not accurate? >> the study didn't speak to

that one way or the other. there is belief that it gets sub clinical and they're less likely to shed the virus. and they're asymptomatic and the cdc website. they asked modelers to make certain assumptions and it's about the asymptomatic people that were 50% as likely to spread the viruss. there's already a general belief it's a belief that most kids when they do get infected with coronavirus it suggested that when they get infected and when they get symptomatic they were just as likely to spread it as an adult >> you guys were talking about it earlier about testing and tracing and with the trump administration telling me they don't want to spend or block the

25 billion or some of the testing and tracing. how much would it cost we wanted to do 5 million tests a day. less than a million a day and 5 million tests a day, 10 million tests a day, how long would it take to ramp up and how much would it cost? >> well, it's hard for me to put a price tag on how much it would cost to ramp up. you know, the tests run about $50, cost of goods and that scale is going to come down. what needs to happen, real swing capacity and 25% of it 25% of tests are in hospital tests. to build out their lab capacity so they can expand the use of

their test my hunch is that they're reluctant to make tremendous capital expenditures because it's likely to go away at some point and they can't reconvert that capacity other uses there might be a role for the government to inject money quickly to expand that capacity and recognize that we're going to have to moth ball it at some point. you can't switch that on overnight and investments that we have right now. it will take a couple of months to get that up and running and an army of lab techs and that's really the bottleneck getting the skilled personnel on board. >> thank you you have been with us almost every morning for 4.5 months maybe longer now we appreciate having you here. obviously we still have questions to keep you here so we'll talk to you again very soon we appreciate your time this morning. >> thanks a lot. >> okay. take care.

>> coming up, pro football rookies are due to start reporting for training camp this week but some players are calling out the nfl for failing to put out a health and safety poll sichlt details nextment as we head to break, take a look at the biggest premarket winners and losers in this case and the s&p 500. when we started carvana, they told us

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>> some of the nfl's biggest names calling for the league to address their health and safety concerns in a coordinated effort on twitter yesterday they tweeted with the hashtag we want to play calling for the league to explain how it plans to protect players and their families they were among those that spoke out criticizing the league for not putting out a clear plan some rookies are set to report to training camp today >> a lot more ahead on squawk box. we are going to talk strategy next another busy week of earnings reports. u.s. equity futures. let's show you where things

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good morning, welcome back to squawk box. take a look at u.s. equity futures. we are in the red this morning dow a little bit better than where we railroad before nasdaq off about 12.

cnbc senior markets commentary joins us to help you get ready for the week ahead mike, we got some earnings on deck what are you thinking? >> earnings are an element that's maybe going to contribute to some of the shifts we have seen in the market away from the very popular high quality growth stocks i wanted to set the scene though with a two year look at the s&p 50 just 500. what about four months since the low. you have flattened out and by the way, that looked like a trading range too. that capped under 3,000. so not saying anything too damaging has happened. after the 218 december low this was about four months after that it's not unusual necessarily to have a little more give and take to it and this is a look since june 8th of some of the segments of the market that have been working and not working.

it's a growth etf on top here. that's been doing most of the work with this very, very subtle one here in the last week or so and the industrials have picked up a little bit. it doesn't look like a whole lot. it's working to keep the s&p flat so far in the context of the trading range. it's not a zero sum game necessarily. they can take arrest or have some of the more cyclicals work as well. earnings and get noticed in this environment as opposed to the reliable quality growth stocks >> stay where you are. i want to bring you into the conversation and i also want to bring you the now managing director of macro economics. last time we talked to you, you were getting a little skittish there and i'm curious how this past week has changed that one way or the other. >> it has and so my idea about

there being better environment for a more sustainable correction if you will and the idea is because of what and financial industrials. we thought that would go well and that we would push higher into earnings season and around about the middle of august, we would be set ultimately up for a more sustainable correction. and because of the election concerns and you express the idea that well everyone can see the betting markets and realizes that it looks like a blue wave and markets focus on that until around about labor day and you can see that when the republicans were about to take

back the house and after obamacare and so the idea was that we would push higher through earnings season and city bank economic has never been stronger than it is and we wrote our note this week about the recovery because retail sales are actually above where they were prior to the pandemic so there was this overall misunderstanding of how resilient the economy was. that will be the catalyst that will push higher and once we have done that and we start to get sentiment more normalized as evidenced, it's pretty high four months after the correction. then we set up in that

correction so it was a little long winded. >> how do you trade that then? >> yeah. so basically what you would do is you would start raising cash and i wouldn't be raising cash in industrials or financials necessarily but expectations were exceptionally high in tech. and the secular stories are strong and would not buy treasuries because those are exceptionally overvalued but just raise the cash so that you can read it later in the fall. around about september or october. and they're concerned about democrats raising capital and income and corporate taxes. >> so when it happened i didn't really attribute it, it became

clear that he was vanquished and the market had good days, do you think right now the market is comfortable with the prospect of president biden along with maybe even a democratic senate and it's not like a worse case scenario biden is in the past at least in the past has been relatively modern. is that where the market is or do you think after labor day if it becomes clear if the betting sites don't change in terms of the senate and the presidency, you think at that point the market wakes up and says all right i'm going to readjust lower. >> i think the reason the market is not focussing on it now, not to look at history necessarily but think about the current situation is we have -- we'll have this relent leslie strong data that people are underestimating so that impulse

is driving it higher but we also have to consider whether we are going to expand the extended unemployment benefits and the next fiscal package so the market is focused on that policy issue more so than where do we go with taxes later on i have been saying this all along for the recovery a lot of the things that people are worried about are really 2021 issues and taxes are a 2021 issue so we need to get through the response of the pandemic and the fiscal package and then you'll start to see, do you know where it's easier? it's in the sectors. you watch health care and you watch financials and they're for different reasons. and the change in washington. >> hey, do you see congress is back back in session.

they're leaving again on august 7th. >> there's a little bit of suspense. >> no, do they work like the rest of us take vacations? >> i have to come back for ten days >> most people leave right now that would be huge, anyway, do you want to say good-bye or do you want me to say good-bye to these guys >> you could say good-bye. >> thanks. >> what a great job. >> i have to go back to washington until the 7th of august and i'm leading again. what are you looking at. >> i'm tweeting something about scott because somebody pointed out how great he has been. i want to say thanks again to him. he's done this with us every day for almost four months. >> he was in his pjs today. >> takes all of our questions.

>> i'm not sure if he just wasn't with the camera or if there was a problem with the camera, but i'm tweeting out how great he has been. there, just hit it. >> you say it there it comes out here i'm going to watch here it comes. >> what is that broadcast news >> it is broadcast news >> intel set to report in the coming days. and nasdaq keep up it's record rally right after this ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse.

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coming up, the markets since the marleaus have been all about tech we'll talk about what's working. it will be easier to talk about wh'sat not working, et cetera. that's coming up next. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

going to be a critical week for tech and the internet sector

a number of major companies set to report. joining us for a look at what's working in the sector, steven milanovich a piece in the "journal" today about when you have to manufacture a newspaper every day, you always have to say something. we've been hearing this all along. investors current rush is worrying skeptics, as if they haven't been worrying all along, who fell the stellar returns -- things like microsoft, even that company the stock has just been incredible amazon and others. do you expect the performance that they report not to live up to where the stocks are? >> well, as you know, joe, tech's had a big run, especially

in the second quarter led by ecommerce. going into the quarter we have less guidance this quarter than we've ever had perhaps before as we have checks of resellers and so forth, it seems like most companies probably made expectations, many of which were lowered after the first quarter. i think we could give reasonably good reports we've got microsoft, intel, ibm probably a bit on the weaker side as covid comes back, it's negative for everything. that could cut into i.t. spending which is probably down but in some sense it bolsters the story for technology so it's still a little bit harder to understand what the catalyst is to send the highest multiple stocks down. >> i wonder whether hitting some of these expectations is going to cause people to say, see, we were right to be in these. typically they would be outperform again to even

maintain the level of their stock prices do you think if they just are able to carry through this period with results that are about in line, will that be enough to keep them up are we headed down in that case? for microsoft, for example, they have to have a big beat? is it going to be okay to hit their numbers. >> yeah, i mean, they might need to have a little bit of a beat given where the stocks are the stocks are some of the software names and midcap names. the stocks this which if they come in line generally could react well intel, we're looking to see if cloud spending is going to be strong in the second half which i think it probably will be. in microsoft's case you are lucky to have good numbers out of the azure cloud what are they going to guide revenue for. the street is looking for a high single digit if they do that, the stock sells off. it's fine. if they surprise meem with double digit numbers, the stock

is going to go up. microsoft is tough to be a bit skeptical of this week i think we will have reasonably decent reports. >> we'll have you back because we've got to go. then we'll talk about it when we know what the results are. we can figure it out that thing behind you is sort of breathing. i'm not sure why, but it's a little disconcerting for me to watch. i'm nauseous thank you, steven. i'm not sure is it wind behind it thank you. we'll see you later. andrew >> coming up when we return, two big hours ahead. you don't want to miss it featuring bill simon on manufacturing post coronavirus and aol's co-founder steve case on big tech's dominance. tom friedman on relations with china, fighting the virus and so much more. "squawk" returns with all of it in just a moment

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plus, you want the security trusted by some of the largest companies in the world. and that's why you trust us. the most reliable network in america. the clock is ticking. investors will be paying close attention to earnings this week a number of big names are set to report we'll tell you what you need to watch. and making the case to bring manufacturing back to the united states former walmart u.s. k smptu.s.c

simon joins us with his op ed. bill simon joins us right now. good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. u.s. equities, we're 2 1/2 hours before the market opens. dow opening off 70 points. nasdaq off a little over a point. s&p 500 off just about 9 points right now. becky? andrew, thanks extra jobless benefits giving millions of americans an income boost. the program starts to expire this week and that could impact the economy and the labor market steve liesman joins us right now with more on that front. steve, this is something we've been waiting for but that deadline is looming now. >> reporter: yeah, it got late,

becky. two opposing forecasts coming from the ending this week. special $600 weekly known as federal pandemic unemployment. if it's not extended, the heritage foundation warns of higher unemployment if it is the heritage foundation says as many small businesses are struggling to survive, the fact that some are having to compete with excessive unemployment benefits to get their workers to come back is making it even harder for them to stay afloat and recover. so estimates are that 68% of workers receive more in unemployment benefits than they do working so just get rid of it, right? not so fast as michelle evermore says it would be a disaster not to continue the extra unemployment benefits. we know people are spending this money and it's prevented a larger collapse. it's really a public health benefit that lets people stay

home and stay healthy. bank accounts from j.p. morgan chase institutes finds higher spending by the unemployed and lower spending by the employed that could be why retail sales have been strong 7.5 million people have come back to work while the pandemic has been in place. j.p. morgan chase writes our estimates suggest that expiration will result in negative effects on households and mack yes economic activity negotiations are next week the house has already passed a bill continuing the payment all the way to january an alternative embraced by chuck schumer and senator ron widen would have the state's benefit decline. that would be a compromise under discussion >> we're in a weird place, i think, steve i just think about, i don't know, inflation.

i read that there's european countries that have a gold standard ready to go if they need it. i don't know things are so bad that we just sop it all up at this point, all the printing and everything else, but we can't believe yields we can't budge inflation it seems like i don't know, it's turning us all into mmt people. hey, no problem. let's just keep going. what are we considering now again? we've got the fed. that by definition -- now they're back they're back in congress and we're going to have borasso on later and they're going to spend trillions more >> reporter: joe, you criticized how economics can be this whole idea of extra benefit is some of the reasons why, this is a behavioral thing. some people argue this is exactly, would he keep people home and reduce unemployment benefits on the other hand, people care about their jobs they want to work.

they're concerned about losing their jobs they want the benefits so how people respond to this is really an imprecise science. you cannot really tell you know, some will say, hey, you pay people more they're going to stay home other folks say, if you don't pay them more, they could be forced to go to work to a place where maybe it's unhealthy. >> you have your green diti tie. you wear green too much you stole my green. >> i did i absolutely south koreaed ypsy. >> i did talk to bobby, yes. he's very well >> freedom is a word for nothing left to do then the other verse it's for nothing left to lose i think he was just pickled. i don't -- you know, so -- but he got mad when i pointed that out because you shouldn't point out that people forget the lyrics of a song >> he didn't get mad, joe. he gets mad when people talk

when he's playing acoustic guitar >> i can't believe you talked to him. hey, bob you just call him up hey, bob, steve. hey, steve, bob. your life. you're living a, you know, sorted life. >> after being able to debate economics with you, being able to talk to bob weir is the second best thing. >> i'm hearing a lot of sarcasm which is the domain of losers. >> no, no, i enjoy that every morning. >> loser parade of quarterly earnings continue we'll hear from dozens of companies including big tech names, microsoft, intel, twitter according to wilf. tesla will report. joining us is sandy bragar, partner at esperian and phil orlando. head of client portfolio management at federated.

i didn't know you added that. >> we added that >> we added that. >> i like that touch of class sandy, you're worried about this spread between growth and value, stretch. and almost aware you think it might be local territory but your favorite stocks, i think, are like apple, microsoft, it includes intel so it's like you're like this. you know, you still like -- you still like them -- >> good to see you. >> -- but you're still worried maybe it's time to switch the value. >> we definitely like value. it's got the short end of the shrift for a very long time. it's poised to come back we like value, u.s. large and small. in the u.s. markets people are for getting about these days a bulk of our equities are companies with strong balance sheets, a lot of cash on the balance sheet.

little or no debt leverage and a lot of sales happening in good economic times and bad that's why we like the apple and microsoft and we get those quality players in there that we think will help bolster volatility and will be poised to help out if we do see inflation coming which might be on the longer term. >> it's hard to ignore stocks that move so much. then again, i feel like you're saying you might have one foot out the door on some of the growth names or no >> yeah. we're focusing just more on the quality. so trying to stay away from the big tech outside of apple and microsoft for sure >> you don't disagree, phil? there could be some type of switch coming of value soon? >> we understand why growth has done so well from this march 23rd bottom. technology and health care have been phenomenal performers you're at a point where large

cap growth has outperformed large cap value by 37 percentage points since the bottom of the market on march 23rd so the question though is what's the catalyst that's going to get this to start to reverse when is value going to start to see some love? from our perspective, it may be the concept that the recession ends here in the second quarter. now the second quarter earnings has been better than expected. estimates for third quarter gdp are moving up. we've seen numbers up around 20, 25% which are phenomenal if and when the market begins to sense that the recession has ended here in the second quarter and then we're going to get back into a positive growth mode here in the third quarter, maybe that will be the catalyst to finally get this value rotation going. >> i'm reading some of your comments here because we talked about it earlier i hope you were watching if you weren't, that's okay.

i'll tell you what we said, phil we said at this point you think that the democrats, given the polls, if we believe them, that they might run the table as a result you say that we might get a hiccup in the market, higher taxes, free health care, free college, those are your words i know that it's in parentheses because it's not really going to happen student debt, double minimum wage, you talk about all of these negative things that would happen but the market has not done it yet. >> correct >> because it's okay with those things some people think the market does better under democrats. >> i don't think the market is saying that these things are okay i think it's too early so while clearly the polls are favoring the democrats, clearly across the board i think there are three issues that investors are weighing the first is the social protest issue, which seems to be

quieting down a little bit the second thing is the surge in infections the second wave in the south, but you've got this very interesting diversion between mortalities and infections maybe the infections were a peak the third issue is the economy again, if we get back into positive growth in the third quarter, both on economic growth, gdp growth and corporate earnings, the pendulum starts to swing back towards the republicans. so i think it's too early to make a judgment that the election has been decided and i think that's why the market is not yet pricing in one fiscal policy regime versus another. >> what do you think do you think the market hasn't made a decision or it's decided and it wouldn't be that bad? what do you think? >> i think phil is right it's a little too early. i don't think the market is considering it we wouldn't be surprised to see more volatility. we do have the same concerns around rec gu lags and taxes and

how that could pay out in the mark remember the last election the market moved in a way no one thought it would, too. it will be really interesting to see as we get closer to november >> all right predict it, i think it's about 23 -- 23 points right now at 62.39 or something like that we know the election is coming this is one of the few times that -- everything -- we didn't know -- maybe some people knew about the financial. we know that it's coming so there will be a decision day for both of you on what to do, and if it becomes clear that things are not going to go well for the incumbents in the senate and in the presidency, at that point would you start selling, sandy would you start lightening up? >> joe, thonn nest, we're in a very defensive position right now. we still have quite a bit of bonds, little bit of gold we bought last year we're happy to have in the portfolio. like i said, on the stock side,

quality and for some oomph value and some em exposure i don't see it as lightening up. if we start thing -- >> buy. >> opportunities you are buying. >> phil, it seems like you're always investing >> we're always investing. we have 2% over weight in stocks overall but we did take some large cap growth chips off the table about a month ago but if the election appeared as if it was going to begin to capture the imagination of investors and we were starting to go the other way, we'd probably get a little more defensive, a little more value, a little more international, a little more cash we're not quite there yet. >> always -- they're never there anyway they came back i can't believe they've got to work two weeks geez i've been here three hours, i've

got to leave august 7th can't come -- anyway. the market at 0 interest rates, maybe that's the most overriding factor regardless of who's there. >> low interest rates, low inflation will keep multiples high our target on the s&p is 20 times earnings and, you know, with 60 basis points treasury yield and 1% core pce, that's a veritable expectation in our view >> thanks. sandy, esperient, i practiced it so much i wanted to say it again. >> thank you, joe. pleasure. >> federated hermes? >> hermes. we acquired that london -- >> not hermes. >> a couple of summers ago. >> will it sound cooler if i say hermes >> we're not the tie and the scarf people. >> you're not? >> no, we're not >> you could be.

>> i knew that you would be wearing one if you were obviously. thanks thank you both. >> thank you thanks for having me on, joe >> thank you, joe. >> i know you would have said hermes because you're very familiar with that -- >> you know, i will never invest in ties. you know that, right >> you get them for free, that's why you'll never invest in them. >> no, no, no. i'm a tie bar kind of guy. $50 or under for tie because i spill on them. >> you spill yourself. >> i won't invest in ties, i won't invest in scarves because i lose them, umbrellas because i lose them. there's certain things, accoutrements. >> sunglasses. >> sunglasses, i lose those, too. maybe warby parker is the highest i go i don't think that's fancy anyway, coming up when we return, the case to bring manufacturing back to the united states former walmart u.s. president bill simon will be joining us

right after the break to discuss his latest op ed later, steve case on the economic response to the pandemic the rise in tech stocks. we'll talk thio m about so much more "squawk" returns right after this you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

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they need to restart relocating back to the united states. bill simon wrote about this at a "fortune" magazine op ed with nikki hailey bill, thanks for being with us good to see you. >> hey, becky. great to be with you thank you. >> let's tackle this head on because i think the first thing we need to address is the conventional wisdom. there are a lot of people throughout who think walmart is largely responsible for the importation of so many goods made over seas because walmart was always making sure that it wanted to get the lowest prices for customers and a lot of times the way to do that was to get something manufactured overseas for cheaper than it could be made here. i know this is something you were working on for a long time. tack tackle that issue head on first. >> well, first i think people

need to understand that walmart, you know, isn't what they think it is. 2/3 of what they sell in the u.s. is either made or grown in the u.s. and so that's the starting point but that said, that means that there's probably still $100 billion of products that are imported that could be reshored and brought back to the u.s. that's what we were focused on when we made a commitment ten years ago, eight years ago to bring $250 billion in u.s. manufactured products back to the u.s. they're on track to do that. >> you noticed this when you were the ceo there what did you do? you started looking around and finding companies that wanted to manufacture goods but couldn't find a place to do it >> well, you know, it's an equation, becky. there's components of labor and capital and raw materials and transportation that make up the

decision about where products are manufactured, and you have to find willing partners who have some of these assets or who can compensate for some of these assets that may or may not be missing in this equation to fill it out i had a chance to work with a lot of the governors and mayors across the country to try to find locations for companies that wanted to manufacture there and when she was governor of south carolina ambassador haley was among the very, very best and most interested in moving manufacturing to her state. >> what did it take from a governor's perspective, from a mayor's perspective, what would they need to do to convince companies to manufacture locally? >> well, probably the biggest thing, and as governor nikki hailey was very, very attuned to this the biggest issue is work force and the training and capability of the work force. and as an example, she would

say, tell your companies to let me know exactly the work force they need and exactly the training that they need and i'll make it happen for community college system, technical training and guarantee that the work force and the capabilities that they need in the work force will be there. and that really was an important factor i think the second was willingness and understanding that deals happen on weekends in the middle of the night and she would give out her cell phone number so if saturday evening we were getting close to a deal we could bring her into the loop and close it and so i think that showed a level of intensity and focus and commitment that needed to make this thing happen. >> bill y do you thi, why do yo is more important with the coronavirus pandemic it has put pressure on supply

chains and maybe change things going forward? >> well, i mean, i've always been an advocate about consumption -- i mean, production needs to be closest to the point of consumption and i think that became really acute during the coronavirus issues. you know, not only were there geopolitical risks associated with importing things that you need for your national security, but the time lines are substantially longer in the months and years to get some of these things made. you saw how quickly when we engaged on things like ventilators and ppe with u.s.-based companies that we were able to get them to market. the same is true for anything you make, not with just things of national security the flexibility and in the end the costs can be lower because you produce them closest to the point of consumption that's really what we're talking about. >> what do you think in terms of the trade tensions that we've seen with china? how does that play out

is it a problem for the u.s. economy at this point? >> well, it's a big issue given that we haven't been so historically dependent with china. i think with innovation and with a little bit of risk, entrepreneurs are finding ways to overcome that i worked over the last year with a firm in arkansas called hagai, incorporated, that makes lapel pins they invested in laser manufacturing and cutting and now they're making them there in arkansas the work force changed obviously now they need laser operators, computer tech people and graphic artists, so they're bringing jobs back, but they're not the typical manufacturing jobs that's the result of some of the trade tension. >> bill, thank you for your time today. it's good seeing you >> yeah, becky

thank you. appreciate it. >> great thanks, becky. coming up, the facebook fallout. disney the latest to slash ad spending on the social media site according to "the wall street journal." investor and businessman steve case joins us to discuss in a bit. here are the futures at this hour we'll see what happens when we get that vaccine news. down 42 on the dow right now. i've always been fascinated by about what's next. and still going for my best. even though i live with a higher risk of stroke due to afib... ...not caused by a heart valve problem. so if there's a better treatment than warfarin, i want that too. eliquis. eliquis is proven to reduce stroke risk better than warfarin. plus has significantly less major bleeding than warfarin. eliquis is fda-approved and has both. what's next? reeling in a nice one. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke.

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and walmart's going to be requiring all customers to wear a mask for face covering at all walmart and sams club stores starting today cvs will require masks in its stores starting today. when we return, investor philanthropist steve case will join us to talk about the government's response to the pandemic. the growing boycott of fabo a oceokndther big tech stories in the news. "squawk box" will be right back.

welcome back to "squawk box. disney slashed its ad spending amid the boycott on how they are handling hate speech the time frame of disney's pause is unclear it was the biggest advertiser on facebook in the first half of the year the next guest is an internet pioneer and one of the most accomplished ceos. chairman of the case foundation. he has an op ed in the washington post on the economic response to the pandemic and how congress needs to rethink its approach to create a more equitable era of entrepreneurship he has a lot of unique and provocative ideas that we want to talk about. before we do that, steve, given your role in the world of the earliest version of social media, i'm curious about your thoughts on the latest with facebook and so many companies pulling out in terms of

advertisers. we're looking now at disney perhaps the latest over the weekend to do so >> well, i'm not surprised to be honest facebook is a terrific success story, amazing platform but they have been slow to recognize the responsibility they have and companies recognizing and in the telehealth space, talk space is one of the first to cancel the partnership. going to facebook over a month ago. many other companies have been joining them if you don't like the way something is happening in the business world, you have a responsibility to do something about it that's a consumer in terms of buying products or services or in this case as advertisers. hopefully facebook will get the wake-up call unbelievable success unbelievable powerful platform they need to be more careful how they manage it to make sure it does allow things to happen that are constructive and not

destructive. >> steve, let me ask you, given that you have a portfolio company that's taken their money elsewhere, has it been an economic hit to them one of the reasons that so many of the streamers, disney was a huge advertiser because they were launching disney+ right now, there are not a lot of platforms that allow you to get to people especially during the pandemic so has there been any down side to not being on that platform from an economic perspective, do you think? >> there could be. given as you say facebook is such an important source of leads for potential new customers, it could hurt hopefully it's more than offset by new partnerships that are formed ks companies take a stance they need to make sure their

companies are more purposeful. >> i want to get to the op ed. do you think mark zuk wereberg will change? i suspect he will. hopefully he will. hopefully he will realize these are not people on the fringes and there's a blood bipartisan effort and hopefully they will take a step back and recognize they can accomplish the goals they have and tweak some of the ways they're managing the service. >> steve, let's talk about this op ed that's in the washington post because you effectively make the argument that the ppe program and so many stimulus measures are aimed at preserving

the status quo, preserving profitable enterprises and not preserving the startups and it's the startups that need the help and will provide more of the jobs in the future what kind of response have you gotten >> congress should be applauded for putting programs in place to help existing companies whether it's small businesses, hospital pi talt, airlines, they were hurt badly you can't stop there we have to start on the new programs we need to focus on them all

across the country normal wasn't working a year ago. you know from different events.

you've been talking about the rise of the rest for the rest of the country for so very long how much do you think the pandemic and this move towards remote work and the lessons of that and what comes after it as we get past it is going to accelerate everything you've been trying to pursue? it's obviously not the way you would have wanted to get there, but maybe we will because so many people are going to move out of big cities and into so many of the places you've been talking about. >> i hope that's the case.

i do think we could be at a tipping point. it's not just watching the capital close but the talent flows. because there hasn't been a lot of startups and capital investment, there has been a brain drain over the past several decades. people have left to go to silicon valley we need to make sure that the jet fuel that drives the startup economy, which is investment capital, adventure capital is backing entrepreneurs everywhere if we can combine the forces i think there's a great opportunity. there was legislation introduced four months ago by senator klobuchar that was focused on this trying to use the stimulus packages to focus on regional entrepreneur ship backing regional venture funds if we can get that flowing, i do think we could be at a tipping point.

is this would allow everyone to participate where we have to focus not just on existing companies in the rear-view mirror, we have to focus on new companies and the industries of the future and do it in a much more inclusive way. >> steve case, thanks so very much by the way, what kind of brand ear phones are you wearing >> these are the beats ear phones. >> i haven't seen those before >> there you go. not a product placement endorser for them. >> those are the exercise onest. >> exactly. >> steve case, always good to see you. >> thanks, andrew. >> thanks. becky? >> thanks, andrew. when we come back, "new york times" foreign affairs columnist tom freiedman will join us. we'll be right back. 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 on your favorite podcast appnd a subscribe to squawk pod today.

welcome back to "squawk box. futures are back where we've seen them. midpoint down more than 100 points overnight. they've gotten down to minus 40 or so on the dow the nasdaq diverging again moving back into a leadership position at least in terms of trading higher, diverging from the s&p and dow jones. there is potential news coming out today, not just earnings we have earnings all week and that's going to be a big deal.

you know the oxford astrazeneca covid vaccine has been something that we've followed closely. all vaccine news there is an expected today results that have been published. the futures give me. it's based on perhaps what happens. i said it's another big week of earnings on tap. i don't know if there's any coors or molson or inbev is out. ibm is out after the bell. tomorrow coca-cola united names to watch. wednesday, tesla and microsoft thursday intel, american airlines and at&t. then friday we have american

express, honeywell and verizon becky? >> guess what, joe >> what? what happened? >> i'm off the rest of the week so have fun with that. all you. >> you were off -- you've -- it is the summer. it is the summer, right? are you in an undisclosed -- >> i took off last week for my daughter's surgery this time i'm going to take days off to spend with kids. >> are you in an undisclosed location can you smell the ocean from where you are? >> not in the basement, no >> you're in the basement. that's all i'll get from you you're in the basement no, i cannot smell the ocean moldy quale socks or something >> it's a nice basement. it's a nice basement >> you don't let it get flooded

like andrew does to his rental it's flooded that's too bad >> no. no when we come back -- >> did you ever clean that up, sorkin >> he said he got a sump pump, remember he got a sump pump. >> are those people -- >> all been fixed. that was four months -- that was five months ago. >> when the owners get back -- >> in march. >> -- are they going to say, who was in here, metallica are you trashing that? huh? guns n' roses? looks like axle rose was in the -- go ahead. sorry. becky. >> all right, guys the market triple threat, a surge in covid cases, china and the election we will discuss all three topics and much more with tom fedriman right after this break "squawk box" will be right back. when we started carvana, they told us

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it's safe and confidential. let's make sure everyone is counted in our community. for more information, visit getcounted.com, and to participate, go to census.gov. welcome back, everybody. coronavirus cases are rising in 40 states across the country as new york renters phase 4 tom friedman is with the "new york times" and he's the author of "thank you for being late" and many other books tom, good to see you it's been a while. >> hey, becky. great to be with you >> tom, i want to play off something joe was just talking about. we're waiting on results from astrazeneca on the phase one results of the coronavirus vaccine candidate.

and one thing i think about with you is you always focus on science and ingenuity. i think it's been kind of amazing to watch there have been a couple hundred potential candidates for a coronavirus vaccine. that's amazing i wonder how you think we're doing in terms of ingenuity, using science to battle this disease. >> well, if you factor out the terrible losses from the virus to human lives, the number of people that have been damaged, we wouldn't ever have designed this moment deliberately becky, i think we're on the cusp of an era of massive creative destruction, the likes of which we've never seen when you think about the combination of factors that are taking shape, first of all, we now live in a world where people have cheap distributed tools of innovation, more people have access now to high powered computing through the cloud, more people now have access to

cheap capital with 0 interest rates and there are more problems out there now ripe with innovation in terms of how we work, how we learn, how we play, how we stay healthy than ever before, you put all of those together and just on the innovation capitalism front, i can see a moment of creative destruction coming, and it will be destroying some industries and businesses, but i think massively expanding others that i can get very excited about i think what you're seeing on the health care front just around the vaccines is an expression of that we've got this kind of race between moore's law and covid's law going on it seems like moore's law may actually win >> yeah. it's incredibly exciting what industries do you think get destroyed in the process where is the down side of the

creative destruction going to hit? >> well, you know, two that are just so obvious is -- one is how and where we work because "the new york times," we're not going back to the office, they've told us at the earliest until january 2021 we've been putting out this gigantic newspaper every day with virtually no one in the office and i don't know exactly what that's going to mean for the post covid era, but it's going to mean a different way of us working think around education what's going on every day online learning is getting better i think we're going to see different models my daughter is working on one with a group of other teachers, you will get a teacher to come into your home with a small pod of students. those are the two ripest, around education and where and how we work >> hey, tom, andrew's got a

question, too. >> hey, tom. first of all, happy birthday, my friend great to wish you a happy birthday >> thank you >> i believe today's the day so happy birthday to you. but the question i had actually was around how much money you think the government should be spending on testing given that we had this news over the weekend that the trump administration actually wanted to reduce the amount of money in this bill for testing. how much money would you put in place and how expansive would you put the testing program to be the reason i ask is because the other component of this, we were talking to dr. scott gottleib about it, you have to hope at some point a testing program, a massive one, would ultimately be motteballed. it would be hard to turn that testing program into something else unless you wanted to keep it around for other potential pan dem mix in the future. >> you know, clearly if we had a

really cheap distributed test that everyone could administer before kids went to school or people got on an airplane, that would be a great bridge between here and the vaccine, but, you know, to me, andrew, the most obvious therapeutic we can have is also the cheapest and the one that's totally proven. joe's waiting for the "lancet" study and i hope it's proven and positive we don't need a "lancet" study showing wearing facemasks and doing social distancing can have a huge impact on the spread of the virus. austria went to facemasks everywhere and they dropped their infection rate from 90% to 10%. it was a massive drop. sometimes the easiest and cheapest is the most obvious and that's where i think we're lacking. everyone should be wearing a facemask in any public space indoors, and that would have an

immediate effect on the rate right now. >> tom, another big issue we've been focused on this morning, i know it's an issue you've talked about and written about quite extensively is what happens with trade? what happens with simon, the fo walmart ceou.s. who joined us and said this is the time we need to be producing and manufacturing more at home there have been so many questions about testing issues it's things like pipettes and things that we don't produce where do you come down on this >> i'm excited with what bill and steve case said. germany as part of the stimulus program has included a massive investment for startups and i would like us to -- i want to take care of everybody, have some kind of social safety net so no one falls through the cracks but i wish we were

expanding in massive and rural broadband. that would be great for education and wonderful for innovation and on the export/import front, i love the example that bill simon gave of some small company down in arkansas reshoring part of walmart's supply chain but using high skills and high tech to do it, not just assembly manufacturing. one of the things i've had about china all along, becky, i've written about this, the reason we're having this clash with china is because they've over reached. we've under performed. we have not been investing in infrastructure and education at the speed, scope and scale we need to be again, one thing that makes me excited about this moment is i think we're going to if i were biden running against trump, i mean, this is the really exciting thing i would be

stressing, the opportunity here to renew, re-energize america. >> i need to put you on the spot it's -- we've got no time. >> sure. >> i want an honest answer i don't want you dodging this. i looked at your age do you have fantasies of shooting your age or have you already done that at golf? have you already done it and you think you can. i know you think you can admit it, you think you can and you think you will soon. >> joe, i just turned 67 my best score is 69 and unfortunately those trends are diverging. i'm getting closer to 69 and my scores are getting closer -- >> maybe find a par -- it might not be at some of the courses where i know you love. i'm not seeing it any time soon at that place that had that currency problem a few years

ago. happy birthday we've got to go. i'm sorry i've got tsao y good-bye becky says good-bye. we'll be right back. thank you. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

good morning earnings season arrives. we'll see how the businesses held up in the spring coronavirus shutdowns. congress on the clock. lawmakers debating the next round of economic stimulus even as the clock ticks down on a temporary benefit helping keep millions of americans afloat how to handle the reopening procession in the middle of a virus. mark cuban will join us on the

big decisions facing the state of texas the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures at this hour down about 65 points right where we've been the nasdaq is diverging and trading higher this morning and the s&p down about 5 points. treasury yields are about where they've been in recent weeks about .6% or so. i was reading ahead. i actually -- i don't know, it struck me as funny the euro hitting a high as they

hammered out an $850 billion recovery front for their economies. for me, it sounded like that's a problem, isn't it? you've got a single -- >> to have to figure out >> yes. >> it's like for their economy. >> in many economies >> not tough enough with an economy where you're trying to do something but you've got southern europe, northern europe, germany going gangbusters, greece, no tourism. it sounded weird to me as they try to hammer out a recovery for their economies, hence, the rub. there's the rub. it doesn't work. >> it gets the same thing in the united states except for we have one common language and we have much stronger federal government and that's the key they don't have one central government that over rides all other governments. >> speaking of the federal

government, lawmakers are returning to washington this week topping the agenda debate, helping get americans through the crisis kayla tausche joining us where are the big issues where they don't see eye to eye yet. >> reporter: well, republicans, becky, are going to be meeting at the white house republican leaders and administration officials to plot the next step for the programs that expire at the end of the month. what this next stimulus should look like, mitch mcconnell, the top health republican, kevin mccarthy, they will meet with president trump, treasury secretary and chief of staff and others and discussions are expected to follow after that. the gop has set out a few markers for its suggested trillion dollar package. unemployment benefits that are less generous than what we saw in the c.a.r.e.s. act and

narrower set of american receiving stimulus check they favor hospitality, payroll tax cut for both companies and workers, that has been a regular, persistent ask of president trump. and a liability shield that makes it difficult for businesses, schools, front line workers to get sued over the spread of covid within their walls. a draft by leader mcconnell's office that was obtained by cnbc says defendants are liable only if they fail to make reasonable efforts to follow applicable guidelines and committed an act of gross negligence for intentional misconduct that is a very, very strict language there on fox news sunday chris wallace asked president trump whether that shield and the payroll tax cut will be red lines in negotiations >> we're going to see but we do need protections because businesses are going to get sued because people walked in you don't know where the virus comes from

they'll sit down at a restaurant, sue the restaurant, the guy is out of business. >> reporter: the last day that both chambers are in session looks like july 31st the day many benefits expire back to you. >> hey, kayla, very quickly. just a question on that. when you start laying out the language that you just used for what this liability would prevent, you know, i think just looking back to the language in your report, it would only happen if they failed to make reasonable efforts to follow applicable public health guidelines and committed gross misconduct even and would be a problem. why not use or instead of and if you did any of these or failed to follow the public guidelines. this sounds like it could be a contentious debate that goes back and forth between the two parties and probably within some of the parties

>> reporter: right that language, becky, as you pointed out is pretty much ironclad it would be almost impossible to prove a business intended to spread covid on its premises, but remind ourselves and our viewers, this is the opening salvo here this is the beginning of negotiations from the republican standpoint they'll start with the strictest language possible for what they want with the understanding this will likely get diluted a little bit as these discussions continue, as will the price. gop has laid down a trillion dollar marker what the house passed in may is $3 trillion we can expect this package to likely land somewhere in between. >> kayla, thank you. for more on what the next round of stimulus could include, we're joined by wyoming senator john borasso, third ranking republican in the senate leadership i think you heard what we were

just talking about, what kayla was reporting on, senator. what's the current thinking of what we're going to see given all the swirling concerns on both sides, whether president trump signs it or doesn't sign it depending on what's in it what's it going to look like >> well, members have been home talking to people, visiting with people i just got back in from wyoming last night, and what we're looking at is not stimulus, it is a recovery bill for our economy. this can only be a bridge to a healthy economy. to me, the tests that i'm applying are three one is, will this help people get back to work and kids get back to school will it help save lives? to me, that's testing, it's treatments, and it's a vaccine the third, of course, is the liability protection that we talk about for our health care workers, for our schools and for those mom and pop businesses that want to open and we know what the difference is nancy pelosi says, no, this has to continue as being the

economy. this cannot be the economy there isn't enough money in the world to do the sorts of things nancy pelosi is promising from handout heaven we need to be responsible. that's what the republican conference meeting tonight and tomorrow will be talking about. >> is there a way to design it so people are induced not to stay at home there may be some extension there for the $600 how would you structure it >> we cannot as a nation continue to pay people more for not working than they can earn at work, but that's what's happening here that expires in 11 days. what we know is about three out of four people who are getting these bonus checks, these unemployment bonus checks are making more from not working than from working and yet in wyoming and talking to other senators, we're seeing help wanted signs all around the country. nancy pelosi wants to extend the

$600 bonus per worker for an additional six months at the cost of hundreds of billion dollars. to me that would be a heavy, wet blanket. plus the economists tell us it would slow job growth to the tune of 10 million jobs between now and the beginning of the year >> hey, senator. i'm concerned that we've been throwing a lot of good money after bad, in large part not because the intent wasn't right but because we did it on the corresponding side of the health issue actually deal with the testing, tracing, all of the things that were necessary so this was only going to be a two or three-month situation as opposed to what it's turning out to be. my question is if we're going to be spending this money, what kind of rules of the road do you think need to come with it so that it doesn't turn into good money after bad? >> number one, as a doctor, i want to make sure that we have all of the resources that we need to fight the disease. very good news along the lines

of a vaccine this would be record breaking almost like putting a man on the moon in terms of so quickly getting the vaccine developed if we can do this by the end of the year you're right about things like the personal paycheck protection efforts that have gone in wyoming, 13,000 small businesses got those loans average loans about 78,000 but we've heard stories, things that shouldn't have happened the way they did so as we do another bill, a round of recovery legislation, we need to make sure that there is the accountability and transparency in place to make sure that the taxpayers are getting their money's worth. so those are the sorts of things then in terms of money that have gone to the states and significant amounts of money already has, i believe they need more flexibility in using that money to make up for lost revenue as a result of the coronavirus crisis >> payroll tax is unlikely in your view, senator

a holiday on that? the president still talks about it, but is anyone else -- is mcconnell or -- i don't want to say d.o.a., that's a bad term to use lately but is it not going to make it into the bill, senator? >> it's certainly in the mix to me it's just one arrow in the quiver of what could help and what could work. it would let people that do have jobs keep more of their hard-earned money. it would make it a little easier for employers to hire people if we get rid of this unemployment insurance big bonus but, you know, this is money that ultimately goes into the social security trust fund so you would end up ultimately having to make it up in another way it does look according to the economists like it would give us 2 million to 3 million new jobs in america so there's some value in doing this. it's one of the points for discussion as we go through the

negotiations. >> where do you think the compromise, if there is a compromise, democrats aren't thrilled with the employer liability. i don't know wl whether republicans are ready. are those things where you can see it in the bill and that's how the two sides could agree? >> there's that area and the total area of the amount of spending, joe. as you know, you're never going to out promise nancy pelosi and chuck schumer. they fire that money and they're very, very good at it. the republicans are in full agreement that that $3 trillion approach by nancy pelosi is fantasy island we need to look at a much more reasonable amount of money, closer to a trillion dollars there will be negotiations both once you get that total package number, that ceiling number, and

then what the different parts are underneath that part is there direct payment checks to people making below a certain amount of money? is there some unemployment insurance at a much lower number what flexibility the states have with using the money there are a lot of different things a lot of moving parts and a lot of people having input in this ultimately you need something nancy pelosi will bring and say please pass this that mitch takes to the senate and says this is a good deal and the president says this is something i'm going it sign. >> 1 and 3 trillion. closer to 1 in your view >> that's the number i would like to see, and we have members of the republican congress who believe we shouldn't put any additional money in this people are going to come back to our conference i have stories from wyoming about what is the best way to move forward, what we're seeing not just with the disease, with the economy, the importance of getting kids back to school in

agreement with the american academy of pediatricians the risk of keeping kids out of school is much higher than the risk of putting children in school that's where they need to be and the pediatricians say they need to be there, joe, in person. >> well, i hope you have prepared yourself for this you have to go all the way until the 7th of august. you are crazy. you're thinking of working two weeks in a row is that -- you've got to get -- you need a new agent or something. have you prepared yourself >> you are correct the correct report -- when the house is planning to adjourn, the senate's going to be meeting into august. so we're going to get this done before anyone leaves we're going to come to consensus on this. >> you're nuts working too hard. >> thanks. >> we're glad you're not there that much. actually, some of us kidding. thank you. see you again soon good luck. andrew coming up when we return, the topo tensional media deals you need to watch for in the

second half of the year. the coronavirus canceled the annual summer get together in idaho where we end up hearing a lot about media industry acquisition. we'll run down some potential ones ourselves here's a deal for you. ebay is near an agreement to sell the classified ads to lln.ay's adenvinta for $8 biio stay tuned watching cnbc. back in a moment save hundreds on your wireless bill

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session. the nasdaq is diverging and in the green. s&p indicated down at this point about 7 points becky? thanks, joe. an update on the business backlash to the divisive hate speech disney has slashed spending on social media network facebook. disney was facebook's top u.s. advertiser during the first half of the year, but unlike other companies, when they halted facebook advertising, disney has reduced its spending without making a public statement. joe? >> thanks, beck. we're going to stick with media. there's no sun valley this summer what does that mean? it means there's no gatherings of the media moguls and tech titans in the mountains of idaho to talk about potential mergers. this year deal making looks a lot different. julia boorstin joins us now with more i'm sorry, julia, that's not on the docket for you

>> reporter: i always enjoy that trip to sun valley and talking and reporting about all the deals in the works after a wave of megamergers over the last couple of years ago, deal making is taking a breather there's been only $8 billion of media deals down from 127 billion in 2019 and there have been 93 deals this year down from a peak of nearly 506 -- 500 six years ago according to pitch book the media giants are busy integrating. disney and fox, comcast and sky and viacom of cbs in figuring out which parts of those companies don't fit such as at&t looking to sell warner brothers video game division and viacom, cbs's simon and shuster publisher. craig moffitt says in the telecom case it's too late to get any approvals before the election when deals do pick up again,

michael nathanson says it makes sense that amc networks and lions gate would seek a buyer but there's not much interest right now. we have been through rapid integration and i think that would change if nbc universal and warner media are ever spun out. rosen blad says discovery is the most interesting player because, quote, their library of content is largely unencumbered so they could be a plug and play for another streaming service. now what's interesting right now is that there's also this other factor to watch of whether an apple or netflix, which certainly have their resources, could look to buy a studio to bulk up their libraries. joe? >> like so many things, julia, it's not monolithic media. in other words, there's winners and losers in all of this, and

just for me, i'm consuming probably just as much media just in different ways. where are the winners? who's been insulated from what's been happening with covid? >> reporter: there has been a lot of m&a in the audio and podcast space. we saw sirius xm by stitcher and in the gaming space, particularly money gaming, we've seen some activity by companies like scopely and also zinca. those two areas people are playing a lot of games, listening to podcasts. still been a very busy space there. >> streaming, just thinking about the way we're consuming. you could even argue that some people are home even more and you need even more things to entertain yourself with, right >> oh, absolutely. and the question though is does deal making pick up at the end of this year, early next year? it will come back. >> all the deals are going to be done on zoom that's the only difference, i

guess, instead of in person. thank you, julia and i don't know what to tell you about sun valley it's a great place in the summer no pio no pioneer coming up, a wide ranging interview with dallas mavs owner mark cuban on small businesses struggling through the reopening process and the return of pro sports the nba is inching closer to a late july restart. check out the shares of halliburton. the oil fields company missed on the top line but posted an adjusted 5 cents a share profit. expectations prefer a loss reversing that it's up a little up 5%. talk much more about the energy sector chevron noble energy, that deal. brian sullivan aerfta quick break. watching "squawk box" on cnbc. like adapt. discover. deliver. in new ways. to new customers.

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welcome back to "squawk box. chevron buying oil and gas from noble energy for $5 billion. it will expand chevron's presence in the personal me -- permian basin. brian, what's your take? >> reporter: it's the first deal we've had since the pandemic my second take is if you're a long term noble shareholder, you're not real thrilled i'll get to that in a second the headline value, $5 billion the total enterprise is about $13 billion. who is noble and what are chevron and its investors getting? it's getting what it wanted to get, guys, when it made that bid for occidental which is valuable texas assets in the permean and

delaware base since you sprinkle in he cequitorial d sprinkle in leviathian there's not much of a premium for shareholders, $10.38 is where they take out of stocks around 9 bucks this is what i was referring to. if you have been a long term nbl shareholder, this was an $80 stock six years ago. like many other oil and gas companies, levered up on debt. 9 billion. that's why the enterprise value is up 13 billion on the total deal you're paying whatever, ten bucks. now the stock is basically where the takeout price is, andrew i'm not sure the market is bidding in somebody else coming in there will be cost cuts here, about 300 million what they call synergies as you know. chevron buying noble

there's two nobles, ne, that's not it nbl is this deal nble not ne. sometimes they get screwed up. >> okay. brian, appreciate it it's a fascinating one we should mention a programming note, the ceo of chevron will be with the gang on "squawk on the street" happening at 9:45 a.m. eastern time when we come back, dallas mavericks owner and shark tank co-host mark cuban will join us about reopening the state of texas. how his collection of businesses are fairing right now and why some investors are suddenly souring on tech. stay tuned you're watching "squk x"n bcawbo o is so pretty isn't it? wow. jim could you pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes.

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as coronavirus cases rise, the demand for air travel is plateauing it's coming at the worst time. phil lebeau joins us now with why that is. hey, phil. >> reporter: hey, joe. just got the numbers in from the tsa. here's the news flash.

not a good one but not a surprise last week the number of people flying in the united states declined down 4.6% it is the first down week in terms of air travel since early april. overall in terms of passenger levels, they're down about 72, 73% relative to where it was last year. the reasons for the air travel situation, it's what we've talked about repeatedly. you have the spread of covid-19, particularly in the sunbelt. anywhere from florida to texas out to the southwest that has people saying if i had a trip, i'm scrapping it there's the quarantines that are in effect for the tristate area, massachusetts, chicago has one that has people in the areas saying, look, i don't want to go through the whole hassle of quarantining i don't know if they're going to hassle me. i'm not going to make that flight you continue to have very weak corporate demand a couple of earnings to watch. we're getting five airlines reporting earnings let's start off with southwest

airlines we've reported last week that 24% of the southwest pilots as of friday have said, we're going to opt out we're going to take early retirement, voluntary leaves of absence. we'll get the results on thursday morning you have united reporting the results tomorrow afternoon the key stat to watch there, cash burn. united has been very aggressive in bringing down the cash burn big week for the airlines. the first down week since early april and that is not what you want in the summertime, which is when the airlines were expecting traffic levels to increase >> phil, in terms of the cash burn at united, what would be a number or range we should kind of keep an eye out for what would be something you would anticipate >> reporter: you know, if they were somewhere in the $30 million a day range, people would sayok. if they were down lower than that, 25 million, i know that sounds absurd.

remember, they were burning $100 million a day at the end of march, early april so they're in that 25 to $30 million a day range, people would sit there and say that's widely expected. that's really where most of the airlines are now, anywhere between 20 and 35 million a day. >> that's hard to get your head around we keep talking about how much things are improving, how much better it looks. yeah, you're only losing 20 to $35 million a day. >> right. >> that tells you the pain and depth. >> reporter: the target for united and all of the airlines get to break even by the end of the year if they get to break even, they will be in a position where they can weather the first quarter. that's always the slowest time of the year in the airline man,. just get to the point where you stop losing money every day by the end of the year. >> reporter: yeah. >> phil, thank you we'll keep watching. we'll get a lot more information this week. in the meantime, let's stick with the coronavirus and the

surging number of cases around the country. texas is among the states seeing a spike in deaths and number of cases. joining us to talk about business in the lone star state is mark cuban. he's a entrepreneur. philanthropist he's the owner of the nba's dallas mavericks mark, it's great to have you on again. been a while since we've spoken. >> thanks for having me. >> give us an update the last time we talked with you you were going around seeing how many of the different businesses that were slowly starting to open up were actually following the cdc guidelines at that point. you had hired mystery shoppers to go out and find out this information. a lot has happened get us up to speed >> we haven't surveyed in the last couple of weeks, but anecdotally driving around trying to do business in dallas, more businesses are shutting down it's not worth it for them to

stay open. you see a lot more people becoming more concerned. going into a restaurant people are wearing masks now in a restaurant where, you know, in june, early july when we first opened up that wasn't the case so people are recognizing this is scary i get a daily report from the mayor's office, and fortunately last night was the first time in weeks that the icu utilization rate in dallas was under 70% and the number of cases was down minimally. hopefully that's a trend that will continue. >> you know, you said something really interesting there are businesses you can say anecdotally that are closing, not because they've been told to, not because they've been required by the government but because it's just not worth staying open i think that's the question that so many people are trying to figure out because that could be the really huge impact on the economy. is there a point where it's just not even worth it to open your doors because you're losing more money than you're taking

>> yeah, no question we had a lot of zombie companies because of the ppp they weren't doing enough business to stay open but they were able to sustain their business and keep employees on payroll because of the ppp funds. you saw a lot of them sustaining themselves they had a surge in income savings rates was very high. people were spending that money online there was a little bit of an equilibrium but i think now with people becoming more concerned here in dallas in particular, you're seeing a dropoff in that retail component and businesses just don't feel it's worth while to keep the retail side of their businesses open. i know in my shark tank companies we had not pivoted but evolved a lot of their business to be as much online as possible and that's really made a huge difference so i can't say why the businesses are closing, whether it's because they just can't do enough business, period, and they closed their entire

businesses or whether they've evolved to being online so that that is really the focus of their business now >> mark, i have two questions for you. one is, you know, given the renewed efforts at maybe the next version of ppp or whatever we're going to get in terms of stimulus, what do you think in terms of trying to tie that money to rules of the road, health standards, maybe mandatory masking and the like so we don't get in the -- >> no. >> -- situation where we're throwing good money after bad all over again >> no. i don't think you can tie it to wearing masks and protocol because there are no protocols for businesses they really don't know what they're supposed to do the cdc has fallen off the map in trying to support particularly small businesses. i don't think you can tie it i think it's really god to be on the demand side. it's going to be very difficult to extend ppp when there's already over $100 billion there just saying, okay, come back and apply again. i don't know that that's targeted enough. on the flip side, i think we do

need to do stimulus again for consumers and it's god to be use it or lose it. you'll see an increase in demand i think that's what's going to keep companies in business >> mark, i wanted to raise a tweet that you sent out in the past 12 hours that's trending on twitter this morning you responded to a talk show host who said the sites for the mavericks but said the minute one player nekneels for the anthem, i'm out. they went after e national anthem police in this country are out of control if you want to complain, complain to your boss and ask them why they don't play the national anthem every day before you start work what are you anticipating this season is going to be like what do you say to the folks out there who may share the opinion

of mark davis who you responded to on twitter? >> everybody has the right to think what they choose this is a bigger issue trying to -- this hopefully is going to be a pivotal time in our history and trying to end systemic racism, using the platform we have with the nba to get people to understand the challenge of african-americans in this country is paramount that's more important than anything else we do. when people talk about shut up and dribble or i don't turn to sports to hear politics, it's not like in the middle of an nba game we're going to start having interviews about political issues that's not the case at all the information or the perspective that people get on a political stance where they may occur doesn't come from the nba, it comes from all of the commentary outside the nba if you don't want to hear about politics, turn off all of the networks and turn on the game and you'll enjoy great nba basketball

we have scrimmages starting next week games start july 30th. the nba is on a course to be back and i think that's great for us, great for our fans and great for the country. >> mark, anything that could interrupt that you guys must be watching very closely, testing closely and seeing what's going to happen in other sports as well what are you doing to make sure that you do get there? what are the concerns you have that you might not >> well, obviously, you know, when you have 400 -- no, 300 some individuals, 400 i guess in total with staff, you have to be very careful about their health, but the interesting thing, this is one big psychological experiment where we're quarantining all of these professionals and they're really adapting well. i can only speak for the mavs. our guys are getting along great, following the rules, wearing their masks. if people in the real world outside of the nba followed the masking protocols the same way that nba players are, we'd

already be dealing with this virus and way ahead of where we are and probably in a much better place. >> you've heard the push back from some of the marquee players saying what is the nfl doing to protect me and our family? >> we have 15 to 17 as opposed to 53 and their staffs are much larger than ours they have a different challenge than we do it would be very difficult to quarantine in one location i haven't heard anything suggesting they're trying to do that whereas, with us we have one location, able to keep everything under control there are perimeters we watch, protocols that we enforce very strictly i think we have the advantage there that the nfl doesn't have. i can't speak for them, but i think it's a little bit easier for us. >> hey, let's turn back to the markets a little bit and just the trend that we've seen recently of the nasdaq, very recently, i just mean in the

last week. the s&p and dow did better last week what do you think about technology stocks here what do you think about growth stocks versus value stocks >> people are chasing performance. it's a momentum based market i don't think this is a momentum driven market. people are trying to say what's next where is all of the money going to go next then they try to get ahead of that and then that plays out and they go back to where they were with tech. we've seen this many, many times before it's part of what happens during a bull market. >> you lived stthrough 1999 is this anything like that when you say tasting momentum or getting away from it or is this different when you see companies like microsoft and amazon that have been putting up the numbers, too >> in some respects it's different because of the fed and the liquidity they've introduced and inflation for financial

assets that comes with that. on a bigger picture it's so similar. i had my 18-year-old niece asking me what stock she should invest in because her friends are making 30% per day and other people just randomly asking me that never look at stocks at all what stocks that they should invest in. you know, everybody is a genius in a bull market and everybody is making money right now because you have the fed put that brings people in who otherwise wouldn't participate you've got all of the free traders, what would be analogous to the day traders in the '90s they can trade for free, fractionalized stocks. it's easy to put in money, look and see that they're up 30%, that they've made relatively a lot of money for themselves. that will keep them participating. i think we're very similar to what's going on in the 1990s as i look at my portfolio, which is still very heavy on amazon and netflix, i have to keep on

reminding myself that the internet bubble lasted multiple years. it went from 1995 to early 2000 so it wasn't like oh, we're in a bubble, then all of a sudden the bubble is over months later. it lasted for years. and so it's difficult to have patience sometimes and recognize that there's still a lot of money that can come in and chase that performance you know, people tell their friends, hey, look at how much money i'm making my niece and her friends, other kids that i know are asking me questions on tiktok about stocks it's different but it's still analogous in so many ways. we have to be patient. it doesn't mean it's going to end tomorrow. >> what did you tell your 18-year-old niece to do? >> i said there's a reason why people sell you that stock, it's not because they think the price is going up. you always have to be careful and understand what you're doing and then the second thing i told her, if you do do it and you make money, the only way you get to keep that money is by cashing

out. don't get creedy pigs get fat, hogs get slaughtered. this is a chance to learn how markets work and companies work. if you're willing to take the time, i'm happy to help you. >> you want to be an investor, not a trader, right? >> in this market you can be a trader but longer term traders typically end up losing all their money. you want to be an investor longer term and understand what you're doing >> mark, thank you it's great to see you and i hope we get to talk to you again soon. >> always. thanks for having me on. >> okay. take care. andrew hey, thanks. a lot more coming up we're going to talk about the markets ahead of this monday morning opening bell take a look at the futures right now. what are we, about 45 minutes before the opening bell. we have gotten marginally better but it's all marginal. dow up 70 points nasdaq up 27 points.

s&p down 7 we're right back after this. 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 on your favorite podcast app and subscribe to "squawk pod" today. at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. experience amazing hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i forgot you were there. get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones.

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there is some vaccine data but in this case it is not the oxford astrazeneca, it's coming from pfizer. incremental information about a trial that the company is conducting with biontech which we've talked about quite a bit they are announcing some early

positive updates from the german phase of the phase 1/2covid vaccine study, including i think the company's indicating the first data about the t cell response the b cell is where you get the neutralizing anti bodies the k cell t cell is eliciting that were associated with antiviral properties now they go on to say -- and the antibodies have broadly neutralizing activity which tha german study supports and expands upon the recently disclosed results of the u.s. trial that they had already given us and in summary they say the data suggests that this vaccine could potentially be administered safely with a manageable tolerability profile. i don't know how much

incremental info it is we are waiting for the astrazene astrazeneca. andrew. >> we'll see whether those results. i don't know if they pay attention to the markets do they pay attention to when the markets open and when they close. will they release that news with the open market in the united states they also have to deal with the markets in uk and europe, as well >> all bets are off after the tweet we heard from dr. scott, what did he say -- >> four words. >> three words >> something like, he said three but then he said four words when he was describing it >> maybe it was a contraction or something. >> i was counting. >> it sounded like he was indicating the results will be positive i think people think the results will be positive here's the tweet tomorrow, yeah, that's four. i can count that unless just saying is one word

now. kind of is the way people use it anyway, tomorrow, vaccines just saying. >> i don't know if that's saying anything other than -- i mean, i guess that's promotional, right. they want to make sure people are paying attention so, i guess it doesn't say much more than that >> right i liked it better when we get a job reports tweet from like the president at like 8:15 on a friday stay tuned for this baby coming. you know, remember that. some people say he has to go. we only have nine minutes left and we have to get to this story. planning to go public in shanghai and hong kong and help accelerate the company's growth in both china and overseas and could amount to one of the biggest in history with ant having last been valued at $150

billion back in 2018 the company is one-third owned by china e-commerce giant a alibaba. >> he meant three sentences. boom, boom, boom anyway, when we come back, jim cramer's first take on the tradg y d indaanthe week ahead stay tuned "squawk box" will be back after a quick break

get to cnbc headquarters and gym kramer jo jim cramer joins us. pfizer i was surprised how much that stock is up, you know, maybe not necessarily on just this but pfizer has indicated up quite a bit.

up almost 4% this was pretty good stuff coming out of germany that it showed the t cell response and the first data that we had that had a cell response, as well we're waiting for oxford every day, isn't it? we're now down only 35% on the dow. what do you think? >> mark cuban had comments about the aggressive trading that people are doing and you and i recognize that pfizer is up that much that may be a lousy buy and could go back to 35. i mean, it's just a failure about oxford, you'll get some moves in pfizer. but a lot of moves ahead of when the market opens people not even waiting. you and i know that is 1990s behavior >> yeah. crazy. even the tweet was bizarre

have fun with chevron. it's a smart buy >> that's smart. thank you. >> we'll see you andrew before we go we want to talk about to watch ahead of the bell today. portfolio manager at high tower and we're waving this news i don't know whether you think it's built into the markets or not and curious what earnings you're looking at this week to determine which way this whole thing is headed. >> good to see you, andrew the push/pull between the economic recovery ask the number of cases and any progress on vaccines and that's what we're going through. that is the life that we live right now but against a very favorable liquidity backdrop up 25% more year over year and more is coming to me last week i was encouraged by the economic data, the

broad-based economic data. we got retail sales, housing across the board things are getting better the big question is, do these new closures from certain states, does it actually dampen the recovery and that's the big question mark. in the meantime, the two things that i'm looking at this week, earnings for sure. absolutely but also this rotation because we've talked about it. you've seen this to value from growth and i think it does have some legs. you have energy stocks 38% and industrials down 11% and financials down 22%. i think you can continue to see a rotation but earnings are going to drive the markets, i think this week. i'm looking at microsoft they grew cloud revenue 61% last quarter. i think they'll continue to see strong momentum and looking at coke down 18% which i think is way over done and intel will look and see how strong pc sales are and also data center so, a lot of moving parts here this week. i think earnings, though, ultimately, is going to drive

the markets this week. >> okay. so, let's make it complicated then end of the week. higher or lower based on these earnings reports >> higher. i think earnings so far have been very good i was very impressed with johnson & johnson and very impressed with abbott labs i cannot believe they were up on the news they beat and raised and had a lot of momentum. i thought morgan stanley's number last week was brilliant i think the numbers are going to be better than expected and a lot of fear out there. i think higher >> weigh in on this. do you think the elections are built into the market at all with this point? >> i think people are starting to get a bit skiddish, certainly. just by the number and the volume of research coming across my desk in terms of whatish foce are putting out in terms of the research but people are starting to get a bit concerned about a democratic sweep and what that means and i know what we are doing a lot at

hightower we're doing it on corporations we'll have to keep an eye on that >> do you think that's in the market already or not? >> no, i don't i don't think it's in the market not a demsweep i ink the people are talking about it and getting nervous about it, but i don't think it's in >> thank you so very, very much. we'll see where the week ends. the market right now in the red, but not terribly we'll see where things end up later today. joe and becky. great showk the street" begins right now. good monday morning. welcome to "squawk on the street street." get ready for a packed week. earnings kick into second gear ibm tonight and congress gets

back to work on an extension of economic support and vaccine data and we'll talk to chevron mike wirth on the company's purchase of noble energy whether we should be focused on the vaccine news or talks on more stimulus? it would be nice to get both >> look, i think oxford is