at the golden opportunity sales event. get zero percent financing on all 2020 lexus models. experience amazing at your lexus dealer. welcome back thanks for joining us on a thursday this is "power lunch." stocks are at session lows 1% decline for the dow s&p, 2 for the nasdaq. the white house and congress are battling it out over the nec stimulus package breaking up is hard to do but that's what tech heavy weight says needs to happen with the biggest companies in the

market that's such a long name that it covered two lines in the tele prompter baseball is back as the mlb kicks off its season and so does sports betting we'll talk to the ceo of fan dual "power lunch" starts right now >> rolls right off your tongue thanks opinion as jobless claims rise for the first time in four months, republicans and democrats are pushing to come to an agreement on phase four as unemployment benefits are about to expire. let's get the latest details >> senate gop leadership and the white house say they have reached a fundamental agreement on the next relief package but we still haven't seen any of those bills yet and it's not clear when we will treasury secretary stephen mnuchin was back on capitol hill to continue the negotiations with senate majority leader mitch mcconnell. he told cnbc he's made one

concession to senate republicans and that's abandoning the administration's request for a payroll tax cut. >> one of the issues i think about the payroll tax cut is people get that money over time. the president's preference is to make sure we send out direct payments quickly so that in august people get more money >> $16 billion in new funding for testing and instead of that $600 boost to unemployment, they are considering a 70% wage replacement instead. you can expect that to be a point of contention not just amongst republicans but also amongst democrats. nancy pelosi saying she's willing to go to the table to preserve that $600 >> it sounds like the republicans have come so some sort of grudging consensus on the shape of this bill

the proof is in the pudding. the first step is for republicans to put out their proposal right now we're looking at a series of bills. republicans are worried they won't be able to get that out in time before the unemployment benefits start to expire democrats saying there aren't going to be unwilling to go forward with any type of short term extension they don't want to pass this in pieceme piecemeal. they will lose leverage. right now what the focus is on is getting republicans on the same page. >> maybe you mentioned this had went by me in the current plan there's $600 a week in extra unemployment benefit. under the gop plan that would fall to what or do we know >> right now 70% wage

replacement. i think that would go through the end of the year. exactly how you calculate that, how would it phase out would it be some sort of cliff all of that is part of the details in negotiations that are still being hammered out >> thank you very much the fate of the economy will be front and center as the election is seen as the biggest risk for the markets. that's according to a new ubs survey that polled more than 4,000 affluent investors and business owners. there's growing optimism on the economic outlook over the next 12 months. mike ryan is divisional chairman at ubs great to see you why do you think is there growing optimism on the economy? >> first of all, i think we're coming from such a low base. you think about what we have seen in the return of optimism we saw incredible drop in the first quarter as covid-19 hit,

as we start the see the shutdown of the economy wasn't surprising to see it bounce back. i think the optimism is a couple of things. one is the fact we have seen economic data getting better secondly has been the support we have gotten from the federal government you think about this, we're talking about another stimulus measure. what we're talking about when we think about the monetary and fiscal policy, this is the most massive mobilization of government resources since we had since second world war it was critically important because it needed to do two things it needed to protect household balance sheet to make sure the consumer would not be compromised and be able to spend money once covid-19 passed it was a second element and that was to preserve as much commercial infrastructure as possible we did restart the economy it was an economy to restart. i think there's been encouragement here when we talk to business owners, they have talked about the benefits they have seen from the fiscal stimulus and monetary policy moves. these have been support iive of

business >> that tells me, at least, that if this next phase of stimulus founders and doesn't get passed, the economy is vulnerable and the market, which is anticipating it would be vulnerable as well can i come to any other conclusion than that i'm in the saying they won't get something done it sounds like they are. >> i think that's fair conclusion we are trying to protect balance sheets and preserve commercial infrastructure and we have to recognize the crisis hasn't passed we are still facing the challenge of covid-19. we'll continue to need that support. government needs to make sure the economy can go through the

healing process. >> political come pains have begun. they will kick into high gear with the convention such as the conventions will be. after labor day, how big an issue will the elections be. >> minds of the investors now. covid-19 is one thing that matters but the current political environment and the election are two of the three biggest issues for them to focus on it's not terribly surprising when ever we have an election there's also concern about the potential outcome especially when there's a transition not only in terms of competitiositif congress but also the white house. it's especially important when we have going through a period like this we're emerging and hoping to emerge in covid-19 we have an incredibly polarized electorate be p the two parties stand so far apart in terms of

policy agendas it's a will the of stake in the election >> thank you very much always good to see you, sir. >> thanks. top business groups from multiple industries, including the u.s. chamber of commerce filed a lawsuit this week against the trump administration over newly issued limits on work visas. tom don hahue joins us by phonet discuss the lawsuit. we want to ask about stimulus with the claims numbers and the stimulus package looming on washington what do you want to see in that next round of stimulus >> i think it's very important that i was just listening to your newscast that now that they've cleared up the matter that the white house is not pushing for reduction in social security taxes that they are focusing on how they will

provide individual support for people in need and at the same time deal with that $600 a week which is $2400 a month over and bo above the normal unemployment insurance. we do want to edncourage people when it's appropriate to go back to work. at the same time, they are working on issues that will help deal with getting schools open and they're going to do some things about direct support in the states all the things you heard this should not be seen as done or disaster for another week, week and a half, maybe two everybody said that's how long

it's going to take to work it out. i think they'll get done whatever they have to do to make sure that we don't have a stop in unemployment insurance. >> one more question on this are you disappointed in the fed's main street program? >> i'm not dispientsed i think the government and the private sector have operated very thoughtfully together i think that republicans and democrats while it's an election year have come together when they really had to i think before you get very much further down the road, you'll see they're going to react in a responsible way and then go right back to playing politics >> let me get to the heart of the matter here which is your lawsuit over these work visa

rules. would you like to see the entire thing scrapped what's the most important objective by the chamber >> i think what you have to focus on, for a reasonable period of time now the administration is looking for ways to end a lot of our legal immigration work and program for whatever their purposes are. it takes two things to sustain and grow an economy. it takes investment cash we have enough of that in the private sector and it takes skilled people for jobs that we need we played the game with the 7 7 750,000 workers and many of them critical employees and we have that taken care of

we dealt with the problem in the colleges which not only send a lot of talented people home but put hundreds of colleges on the brink of foreclosure and now we have this huge lawsuit which basically is not welcome here sign for engineers, executives, it specialists, doctors, nurses, et cetera, et cetera, and we cannot do that because one bad thing happens. >> what about the folks who say all of those types of jobs, all of those positions, all the workers coming into the country that it's time for american workers to have a privilege status of some sort when it comes to being trained, being worthy, being available, being hired first for those positions. that's a good question except it

doesn't deal with reality. just before the pandemic, the unploim rate in the united states is the lowest in 65 years. there was significant shortage of workers that we had traditionally educated here in the united states and then they were talking about sending people home. my suggestion is clearly we have to train workers who are not skilled but we have to keep the workers who are training in our universities or here's what happens. if we don't have them, they go somewhere else and that's where we have to send the work where the skilled people are, if you keep those people up to date it creates extraordinary numbers of jobs for people that work within those countries, within those companies and within those

universities and within those other activities when in our society. the other big countries and economies have a billion people. we need to bring some people to fill in the jobs we need and train them here and keep them here >> you're saying we import the workers or export the work we'll follow the lawsuit with interest thank you for joining us today we appreciate it >> thank you very much have a good day. ncht still ahead, we are at the lows of the session. down 50 points with technology there you see the s&p down about 46 a slide that picked up right from the top of the hour

there could be more pain ahead for technology big call to break up big tech and the top executives will testify on capitol hill next week there should be firewos. he osdetails. usaa is made for what's next we're helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa.com

welcome back stocks are at the lows of the session. the dow now down as you see there, about 400 points. technology the biggest drag.

a big call from tech investor to break up big tech. here is what chamath said earlier on "squawk box." >> would you break them up >> yeah. >> you would >> yeah. >> all four of them. >> it's good for competition they've all had a good run the reality is the incremental of investment is wasted inside these big companies. >> this is ahead of all four of the big executives those guys right there heading to capitol him next week should investors prepare for a big tech reckoning if not next week, some time later this year or next.

welcome. what do you think? these companies are very different in both their market power and what they do, what they make, what they sell. amazon, apple, facebook and google you got to consider them one by one. should any of them be broken up and if so, why >> i do think some of them should be broken up. i'm spoken to congressman that -- each of those father companies operates a marketplace. apple operates the app store facebook and google operate in ads marketplace. the view is they are taking unfair advantage of those marketplaces to preference their own product. i don't think i need to tell the cnbc audience that healthy

competition is a good thing. congress cannot break up the companies. >> lease take the case of google, just to start somewhere. as you look at its multiple businesses, where is the anti-competitive nexus there if you're a consumer, you see more and more and more google's own ruesults their own products and properties are populating the top of that search field google is using its power to steer people to its own products

and because it also business is selling ads, it's making competitors pay for ads to appear in the rankings almost every part of the modern tech has a google product in it one or two position in the market and google uses that power to affect revenue across the entire web >> you think breaking off instagram from facebook could become the focus on monday is this something authorities could decide, if they did come to such a decision >> we'll see a lot of focus on that on monday i think a lot of the focus will be whether that transaction was properly scrutinized at the

time whether the doj took a hard enough look at facebook's acquisition of instagram if it wasn't properly scrutinized, whether some remedial action should be taken now. i suspect this will a major focus of the hearing when mark zuckerberg takes the stand >> we haven't gotten to amazon yet which is partly a web services company >> would they be worth more broken up than together? >> absolutely. you spent off youtube from google, it's going to build an extension of its search engine

to cover the web those are growth opportunities they don't want to take each other. break them up, you'll see a lot more movement from a lot of executive who is have been contained. >> they could find new pathways to enrich themselves if that's the case, why not let the investment bankers do the work here? in other words, come in and say, listen, facebook, you got to understand that you're going to be and make a lot more value creation in you split this company up than here why not let the market and the investment bankers take care of something that you seem to think the government can and should? >> you have four different companies with four very different stock structures,

different ownership structures you cannot do that to facebook mark zuckerberg, the ownership structure is every year the shareholers vote to put more oversight over mark zuckerberg and he votes no and wins you have a different set of problems that insulate the market for pushing for some of these options. >> thank you very much kelly. apple down more than 4% now. >> this is to use the funding the company says to make it star link satellite broad band service operational and conduct

orbital test flights the company telling investors it thinks it's going after a $1 trillion addressable market bringing satellite broad band to any location including all areas on earth and to ships and sea. spacex raising up to $1 billion up from 36 billion in february back to you. >> thank you stocks are nearing the lows of the session they dropped a lot in past hour. the dow is down about 400 points the nasdaq is down more than 2% as technology is leading the declines it's not just gold and silver soaring 25% this month. we'll talk about what's behind the precious metal surge remo "power lunch" after this.

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welcome back gold isn't the only hot metal this year. silver is up 26% this year currently trading at around a 7-year high. analysts crediting the move to inflation and the potential for more demand tied to green investment should joe biden win the u.s. presidency. let's bring in the trading nation team to discuss it's good to see you both. guys, you cecil vsee silver her. what do you think is the main catalyst >> silver is a precious metal

but has its foot in the camp of precious and industrial metals it's been pushed up. copper had been surging on the expectation that 2020 in the second half of 2020 is going to be a huge recovery that is also being priced into silver that's the part of the story that may have the fly in the ointment we'll see if the prices can hold up >> trading at 22.75. bill, do you think this move can last in. >> i love the precious metals. i've always said you need a portion of your portfolio at minimum in precious metals silver has some room to run here i think we can see $26

i think that's in the cards. i always say you cannot chase silver and gold for that matter when everybody else is screaming for it take a look at the chart i provided, go back to this historic run of $50 in 2011. that was spoths back doupport b 2011, 2012 i think $30 could be in the cards too. you need to wait for the prices to come back in. it's a flexibility investment. >> thanks. head to trading nation or follow us on twitter for realtime analysis ahead, we are monitoring the sell off add we have seen stocks take a dive in the last hour

take a look at what's leading the market lower now a nearly 4.5% decline in apple a little bit less for dow. sports are making a comeback with the mlb season restarting tonight. gamblers are rolling the dice. the ceo of fanduel will join us to talk about the return of live sports in front of no fans that's next. stock slices.

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new york's governor is calling for more testing he says the federal government is working on supply chain issues but demand for another kind of testing will soon strain labs even more >> this states nationally have to do a better job of using their local labs to increase capacity flu tests will eat at the capacity for the covid tests that's compoundsing this fear of a second wave in the fall. seattle's new hockey team has a name the seattle kraken will be the first hockey team since 1924 the initial reaction is positive the fda has expanded it ts list of hand sanitizers that must not be used because of toxic levels of methanol it includes more than 75 brands.

some were sole at walmart, costco and other chains. go to cnbc.com for the full list let's check on markets that have taken a leg lower the dow is down 360 points the nasdaq is the worst performer with a more than 2% drop we want to highlight the move in apple. there's been an axios headlines that the company is being investigated by multiple states for deceptive practices. the headline hit about an hour ago. might be why apple stock is down about 4% the nasdaq and the rest of market trading weaker as a result as well the oil market is closing up for the day. >> oil prices are slipping along with a broader market. you can see wti and brent settling down about 2% brent closer to 2.25% or 43.29 a

barrel oil price correction could be on the prize. those benches have averaged near the prices you can see they above the levels america's past time is back. baseball returns tonight after a historic four-month delay because of coronavirus we have a preview of what opening night will look like tony fauci throwing out the first pitch. >> it's going to be weird. baseball is back

dr. fauci is throwing out first pitch today. usually that's the president not so here in 2020. with no fans in the stands you'll see a will the of weird things but you'll see lots of technology to make up the difference fox is experimenting by overlaying virtual fans in the stand to be seen only on tv. fox can adjust how the crowd reacting to game depending on the situation. they can change the color clothing that the fans are wearing and make the virtual crowd seem more sparse because they have virtually gone home. baseball does not have a bubble. teams will have a long list of safety protocols toronto blue jays don't have a home yet they had a back up plan to share pittsburgh stadium but that with shut down.

so far no home for them. >> now i want to watch to see if the virtual crowd leaves in the middle of a blow out >> i wanted to see how the crowd reacting to anthony fauci. there's going to be no reaction. >> thaey'll come up with something. >> the directors will have control how the crowd reacts tths been months with no sports and gamblers are rejoicing at the chance to wager on their favorite team >> matt, good to see you they're talk about baseball and this idea you can control how your virtual fans react.

tell me a bit about the excitement and the anticipation for you to see major league baseball coming back online. >> for us it's christmas and new year's and black friday rolled into one t going to be psaa summer like e other. >> the $80 million you're putting back into your customer's account i opened up my phone and saw fan duel has deposited $10 in your account. why do you need to do that if there's such demand for sports betting and how do you plan to get a return on that investment? >> thank you for having our app on your phone. i really appreciate that two, it's all about saying thank you.

we wanted to give a big $80 million thank you to the fans out there. this was our way of doing it >> how bad has this been for you, be pandemic, complete lack of sports or people betting on ping-pong and racket ball and korean soccer? >> while our sports business and our fantasy sports business were slower than we would have expected, the horse racing business, the poker business, casino business were growing far faster we weathered the pandemic really well our team was incredibly creative in creating free the play games and running madden similulations

>> you know, it strikes me when you look at the effect of the pandemic on tax revenue, state and local, they are in such a cash crunch. there's going to be such a need to try to find new streams of revenue to support government programs could this boost your opportunities by seeing other states adopt sports betting that haven't yet. to see more liberalization in terms mau s of mobile gaming i know you don't talk about this a whole lot. you taub about sports but there's this whole casino business that brings in a lot of money and sport tax revenues as well are you going to see more states looking to adopt that because of the pandemic >> we think so.

it enhances consumer protection because we're putting the illegal market out of business it's win win all the way around. they are seeing in states like new jersey and pennsylvania, and we are getting a will the of inbound interest from legislatures to accelerate passing laws and in states we never thought would have a chance or would be much slower to adopt fiscally as well as the positive experience that many states had so far with legalized sports betting. >> over the next two months, we'll see sports like we never have before. lit be a collision of all the major sports in the united states including professional soccer

as you rank the sports, how do they rank and what is the relative rank of them? is the nfl the biggest and the biggest by a factor of three over college football, over nba, over baseball. take me through that a little bit. >> sure. >> if you look at it over the course of the year, that's large by because of number of games played if you look at the number of active players, nfl is the most popular sport. i think one of the situations that we're watching is whether or not college football gets

played this fall because that's obviously hugely popular with the number of people and from our perspective it's one of the most challenging to play in the current environment. >> which would be the worst baseball team, for you, for fanduel, to end up in the world series >> to win the world series, the mets would be the worst. it goes to show that people bet their hometown favorites if the mets won and we paid out and lost a ton of money, you'd have to many happy new york fans that we would more than happy to write the checks >> matt, thank you so much for joining us tyler, i always bet the brewers. >> why not as you should. >> i'm glad you do it with fanduel. >> thanks.

we appreciate it >> our parent company comcast is an investor in fanduel today's power movers florida agricultural economy in isis we'll get to that, next. woman: my reputation was trashed online.

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and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. welcome back we have a news alert on apple. mull approximate states are investigating apple for deceptive trade practices. we should say what those practices or may not be allegedly is unknown this is according to a letter seen by cnbc from the attorney general of texas dated in march. one thing we can tell you is we have reached out to apple.

we haven't heard yet shares are taking quite a hit. they are down more than 4% now multiple states investigating apple. this according to a document seen by cnbc from the attorney general of texas in march. not sure what the practices are. apple taking a hit you can see shares more than 4.5% now tyler, back to you thank you very much. still ahead, the dow taking a midday dive, as you can see there. apple contributing in part over the stimulus package coming out of washington. we will have more right after this quick break

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welcome back florida's agriculture economy getting hit first by an outbreak and now restaurant reopenings rolled back. that could sink demand again we have a look at how that is impacting florida's economy. >> it's been a tough time for the state, kelly the pandemic hit the florida economy with a double whammy the top two industries are tourism and agriculture. both have been deeply affected it's $137 billion ag industry suffered $522 million in

covid-19 related losses. that is according to the state ag commissioner. the closure of restaurants, schools, and hotels abruptly dropped demand and florida farmers had to plow under crops and dump millions of gallons of milk shelter in place policies rolled out right at the peak of the spring harvest >> there was no place to sell it to they had it when they were first harvesting and planning for the harvest season they were not anticipating food service demand plummeting. >> florida produces more than half the nation's oranges and grapefruit and about a third of the country's tomatoes, bell peppers and cucumbers. all told, the state exports nearly $3.5 billion of ag products to other states data showing florida's produce shipments are still down year over year by nearly half romaine lettuce shipments disappeared. you can see also the specialty crops, exports of sweet corn,

cucumbers, tomatoes, beans, and bell peppers seeing huge cuts there. looking ahead, if we see even more closures in october and november, kelly, that would hit the beginning of yet another harvest cycle in florida which could yet another economic punch. >> the numbers are horrifying. so why is of all things o.j. prices, the price of orange juice up this year >> yeah. they're up pretty significantly. up 20% so far this year. that is a significant reversal of the downward trend we have seen with the futures the last four years or so the reason for that is traders are worried about covid-19 related outbreaks among farmworkers. we've seen hot spots throughout the country. florida was hit hard earlier this spring. they're worried that could have an impact on the supply chain. so far now, we haven't seen it hit the supply chain but again, so far seems like the prices are baked into the future prices that traders are concerned about.

>> thank you still ahead, intel under pressure with the rest of the tech sector down about 1%. we'll tell you what investors are watching for in intel numbers right after this break don't forget, you can always watch and listen to us live on the go on the cnbc app ♪ ♪

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welcome back to "power lunch. tech is the biggest lagger take a look at the chipmaker intel. the stock is down 1% 1.3% on the session. the company reports earnings after the bell it had suspended guidance in april because of the pandemic. for more, let's before i in steve grasso, managing director of institutional trading at stewart frankel. great to see you hope your summer is doing okay intel has trailed a couple of the more direct competitors like amd and nvidia why and do you expect that to

change with what the company reports later today? >> sure. so if you look at your point, amd release the another chip yesterday was a positive headline stock is up about 34% year to date nvidia is in that sweet spot for shelter in place, gaming, internet things. intel has the data set of business will people are most likely to pay attention to i guess it's about 30% of their business but if you look at where intel's coming from, it's the old guard. they're up about 1% or flat year to date so within the tech complex, you get value which is intel and growth which is the other two and growth has been winning. i don't have to tell you that. >> how much does apple's move away from intel chips hurt

intel? >> i think it's dramatic i think perceptions reality. not only does it hurt financially, i think it leaves room for the entire space. other directions other than intel. intel is the name, premier name. i think it's getting pushed off to the way side by nvidia to be honest >> quick thought on apple. we reported just a moment ago that apple may be the subject of an investigation, i believe, in texas of undetermined as yet scope. why is apple selling off today >> so obviously those headlines in the house panel that you have been covering in a great fashion, so all of large cap tech is under pressure i sold my apple and my microsoft last week not for this reason. i sold it because of that rotation out of growth and into

value. i'm long tse wrk, and oln those are my value plays don't forget the one i hit out of the park in virgin galactic with you, my friend, on air a couple weeks ago >> it's up 60% in two weeks. 65% as of 11:00 a.m. today nice call, my friend we have to leave it there. steve grasso, thanks >> thanks for watching "power lunch," everybody. "closing bell" starts now. >> it does welcome to "closing bell." what started out as a quiet session turned into a full blown selloff. dow, s&p 500 down more than 1% nasdaq is down over 2% let's have a look at what is driving this selling action. unexpected rise in jobless claims for the first time in 15 weeks. the labor picture darkens and data continues to soften the stocks are sell off