>> it is 5:00 a.m. and here is your top five at 5:00. fasten your seat belts wall street bracing for one of the most critical weeks in months the stocks try to regain lost ground apple, 3-m, amazon and many other games on tap. >> drama in d.c., republicans ready to roll out their latest proposal to try to keep the recovery going and incomes coming in. tensions rising.

today is bad blood between beijing and the white house showing no signs of letting up and bracing for impact this is worldwide exchange right here on cnbc >> well, good morning, good afternoon, good evening, where ever you are thank you for starting here with us on cnbc. it's going to be a big week. maybe the busiest and most important week of the summer why do we say that here you go. this will easily be the most packed earnings week of the season 167 of the s&p 500 will report including 12 dow components. we'll get numbers out of apple, amazon, boeing, mcdonald's, 3-m,

exxon and many more. also as soon as today, senate republicans should unveil their latest stimulus proposal. timing all but assures congress will miss the deadline tomorrow kicks off the fed's latest policy meeting. they'll talk about their own form of stimulus it could be again talking about new tactics to keep interest rates low for years to come. also wednesday, we see rescheduled technology ceo anti-trust hearing, ceo of apple, tim cook, you have jeff besos. mark zuckerberg, all taking to congress, all getting the hot seat over anti-trust issues. that will be a big one on wednesday. now ahead of all of this up they're following the drop a drop in hospitalizations over

covid in texas and arizona one likely reason we are seeing futures mildly in the green. better yet potentially good news for the country. all right. well the market question lately has been whether there is a real and longer term shift going on right now from technology to value stocks we talked a lot on the program about how the tech stocks overweight the overall market, market structure well, if you read over the weekend they got on board highlighting that now the top five stocks are 22% of the entire weigh of the s&p 500. all right. what's also been red hot lately are the medals let's get a look at how gold is trading. up another 2%. silver up nearly 6% and by the way, i don't want to give too much away, it's the subject of your rbi coming up a bit later

on in the show medals remaining high. let's get your trade and top stories over there got a mixed trade. new news to kick off the week. >> good morning, brian last week european stocks broke a three week win streak to end the week lower and now we have open up a new scene in acceleration of the losses for the most part but we have bounced off the lows this morning. underperforming down 1.6%. it has a lot of attention over the weekend for a rising number of coronavirus cases a few different clusters fuelling concern around the spread across the country and actually prompting the u.k. government to overnight reimpose a 14 day quarantine rule meaning all travelers returning from spain into the united kingdom will have to stay home for 14

days they have been hit very hard this morning that basket down 2.8%. it was down more than 3% u.k. airlines getting hit hardest as they travel quite frequently to spain. a lot of concern around what may come next in terms of various travel restrictions and what this means for the outlook for the virus and potential second wave in europe it's not all doom and bloom here this morning brian. >> all right no it's not. now to the latest on the push to get more virus relief aid to americans as republicans prepare to unveil their proposal new concerns emerging surrounding the outbreak here as well frank holland with more on that. good morning. >> good morning to you brian, as talks continue in washington, covid-19 hot spot florida

surpassed new york with nearly 424,000 cases. the state seeing more than 9,300 new cases just yesterday alone as well as 77 deaths this as the testing czar for the federal government admits it's taking too long with some states expressing concerns about backlogs amid all of this the white house and senate republicans are set to unveil their latest covid-19 bill that could happen as soon as today the treasury secretary says some pieces of the $1 trillion bill such as the unemployment benefits and the protection they are a higher priority than others meanwhile, the white house economic adviser says more money will be going into the pockets of americans >> don't forget. there's a $1,200 check coming. i would have preferred a payroll tax cut on top of the check but be that as it may it doesn't work

the check is there, the retention bonus is there. >> and featuring the ceos of the four largest american tech companies has been rescheduled for wednesday. the heads of amazon, apple, facebook and google were supposed to testify today before the house antitrust subcommittee but that hearing was postponed to accommodate the services at the capital for the civil rights leader and congressman and representative lewis back over to you. >> thank you we'll see you in a few minutes thank you very much. turning back now to the markets, major indexes on pace to begin the busy week higher nasdaq aims to recover from back to back losses is that even allowed the next guest says the focus should shift to small caps not only because he thinks they could out perform the broader markets but they could reveal some hidden truths about the american economy joining us is dan, he is the chief investment officer

case numbers are scary but they'll only ever go up. it's just math luckily hospitalizations they have come down in key states like texas and arizona so very good news. you look at europe, they're starting to recover a little bit more quickly are you optimistic about the american recovery and reflect that in the small caps. >> yes because when you think about it we entered this later. so we were one of the last economies to shutdown the way that we did this past spring so it's logical that those economies would see recovery first and we would recover as well you're seeing the weakening dollar that's telling you hah

the euro zone is improving and positive data out of germany all of those things are telling me that the growth prior to the pandemic being an issue is actually going to happen much later. remember it was in the fourth quarter of 2018. so it's been in the dog house now for quite sometime much better valuations there and there's much more opportunity in my opinion on a going forward basis. >> we've been talking about it on the show. it's the heavyweight market and the article basically reflected if they go down can the market basically go up? can the other, you know, whatever 495 s&p stocks come to

the rescue what do you think? >> well, it's sort of one third two third. only one third of the index is positive and then you have that ultra crowding among a hand full of stocks at the top so now it's very logical that you'll see that spreading out to a more economically sensitive names within the s&p the same thing is going to happen in the russell 2000 as well starting to see that. so you'll never have them dominate the benchmark also they do well in the annual rebalancing. so i think that it's very timely now to have exposure in the u.s. small cap stocks the index went down more in the first quarter but recovered more in the second and it's roughly in line with the s&p right now

many of them can report a little bit later but we're getting clues. and banks are operating well >> just quickly, busy week, earnings, stimulus proposals, obviously continue to watch hospitalization rates. what's the most important thing that you're watching this weekend? >> i think that you want to really pay attention to the dollar as that weakens it's a positive. a positive sign for our companies that are exported which is again about a third of the s&p 500 so that headwind that we had for quite sometime of the u.s. being the only growth economy glebl -- globally

some of the other laundry is getting cleaned as well. >> yeah and the dollar continued to weaken helping medals that we'll get to more in a later segment of the show. always appreciate your insight thank you very much. >> thank you >> have a good weekend. >> we are just getting started on a monday morning. how is that for a tease. when we come back, do you remember bitcoin that's right others remembered it or are paying attention plus why shares are racing higher this morning and later a deep dive into d.c. with sarah bloom raskin he wn rlidadhewodwe exchange returns ta-da!

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secured up to 472 million in additional funding for its efforts in developing a vaccine to treat covid-19. it will go toward late stage clinical development

shares are up 300% this year you can see this morning they're also up about 8% you don want to miss the interview at 7:30 a.m. eastern time here on cnbc on squawk box. s&p plans to spin off it's cloud software business. they'll continue to hold a majority stake after the ipo also reported a rise in second quarter results as revenue rebounded from software licensing, shares of sap up more than 2.5% and bitcoin jumped up for the first time in six weeks. it's up more than 10% in the past 7 days. analysts point to hopes for more stimulus and gold trading near all time highs as two factors for bitcoins recent rise back over to you >> all right on deck, they're picking up the

pieces after a major hurricane makes landfall over the weekend but it was not as bad as some feared oil markets they're watching it and we're watching it as well. we're back with an update right after this. >> today's big number. $601.4 million that's the total sales of plant based meat alternatives including beyond meat and impossible foods in the past ye ye arat up 25% from the prior period

welcome back hurricane hannah making landfall in texas early sunday morning. it's a category one storm before weakening to a tropical storm and moving further inland. the national weather service warning that even in it's weakened state hanna could dump upward of 18 inches of rain in the region through today life threatening flash floods are a very serious concern the texas governor greg abbott issuing disaster regulations for 32 counts in the storm's path. as of this morning, they have not evacuated workers or shutdown production from the gulf of mexico platforms in part because hanna weakened you can see oil weakening a little bit itself falling .3 but it's not the only storm threatening parts of the united

states more on a scary situation for hawaii a rare situation as well good morning >> hurricane douglas is swirling across hawaii right now. it battered the islands with heavy rains and strong winds but it appears the state will miss the brunt of the hurricane also the hollywood legend olivia de havilland has died at 104 she died peacefully at her home in paris from natural causes she won two best actress oscars for powerful performances in to each his own and the heiress peter green also died at the age of 73. the influential guitarist received lots of loving tributes including stevie knicks. she wrote on twitter that his legacy will live on forever. >> and on friday we lost reg regis philbin.

he went on to greater fame as the star of shows like live with regis and kathie lee and live with regis and kelly and who wants to be a millionaire. everybody posted tributes on social media regis was 88 years old and another blockbuster hit on the billboards for taylor swift. her new album folklore surpassed 1.3 million global sales within 24 hours of its debut topping platforms like spotify with 79.4 million streams that was a record for an album by a female artist and apple music, 35.7 million streams on that one. that's it for today's headlines. brian, back to you. >> we'll see you in a bit. thank you very much. coming up we'll go live to beijing where crowds cheered in china as a key u.s. conciliate closes plus senate republicans ready

their latest plan to keep the u.s. economy afloat. stock futures, they're up 72 we're back right after this. look here, it's your very own all-in-one

entertainment experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. no summer break for you or wall street as washington and wall street brace for a busy stretch of earnings, economic data, a fed meeting and a tech ceo hearing. futures, they're higher. the gop prepares to unleash their latest virus aid package

but is it already doa? standing by to break down what might be in the plan and here's the story about silver's price surge. the commodity's best run since the days of the brady brunch it's monday, july 27th this is worldwide exchange right here on cnbc all right. good morning and welcome welcome back, everybody. i'm brian sullivan i hope that you're having a good start to your week it's 5:26 and here's how your money and investments look right now. let's check it out dow futures are higher right now. the nasdaq posting the first two day losing streak since may. can you believe that the first two day losing streak. i don't know down day after day for the first time in a couple of months the s&p 500 once again negative

for the year don't include dividends. if you do its still positive either way but that is a backdrop it's going to be a big week for your money maybe the busiest and most important week of the summer why do we say that we don't take it lightly among major events this week it will easily be the most packed earnings weeks of the season 167 s&p companies report those include 12 dow components. apple, amazon, boeing and exxon and more also today, senate republicans are likely to unveil their latest stimulus proposal timing all but assures that congress will miss the deadline to extend the $600 per week enhanced unemployment benefit which expires on friday. they could again be talking about tactics and keep rates low

for years to come. technology ceo anti-trust hearing. it's a heavy hitters list and it's going to be in the hot seat tim cook of apple, jeff besos, zuckerberg, ceo of google and more all on capitol hill speaking of technology, continued investor focus on the sector there is a rotation happening from big tech to value the market story right now and getting on board over the weekend highlighting how the top five stocks are now 22% of the entire weight of the s&p 500 that is 4% more. here's a look at how gold is trading right now near the highest level ever, 1936 silver which is the subject of your rbi in just a moment is up 6% right now ahead of the fed meeting, the ten year treasury note is not

moving as well a moment of calm the last few weeks. ten year yield of .57% with all of that in mind, big set up on a monday, full team coverage covering every angle that you need to know to start your day aman is in d.c., eunice is in beijing and we'll begin with you because china firing yet another overnight and it's back and forth with washington as a u. u.s.consilate now closes. >> they have seized it in retaliation for the shutdown of the houston conciliate of the chinese. the chinese foreign ministry described this as a legitimate and appropriate response, a necessary response and they will

lower the u.s. flag for the first time at dawn today they have 72 hours to clear everything out the state media has been show casing footage of when they describe are black plastic bags as well as shredded papers on the u.s.consulate grounds. trying to equalize the footage of what was widely distributed of chinese officials burning documents at the houston ko consulate. it seems to be suggesting in messaging to the public that china is more civilized in it's approach and i say that because not only has the official line but also in the state media, they have all been stressing how

the chinese authorities went through the main entrance. as opposed to the americans who on friday had apparently gone through the back door and had to force themselves into the compound so that has been the main focus of the state media a way to try to message to the public that the chinese are much more civilized as opposed to the barbaric americans. >> or we were just more welcoming and allowed them in as is their right perhaps however you want to look at it which paper and which country but a serious story over the weekend. thank you. do appreciate that all right. now from beijing to d.c. where senate republicans are hours away from unveiling their latest coronavirus economic stimulus plan aman, what do we know about what might or might not be in this proposal and when we will

actually see it. >> after negotiations over the weekend we do get a sense of what the starting point is with negotiations between republicans and democrats going into the deadline of later thisweek to extend unemployment benefits and republicans layed out a little bit of what's going to be in the plan today over the weekend including the treasury secretary that went on television to abandon the administration's request for a payroll tax cut. that's something that the president insisted really needed to be in this deal now though, vowing the reality that there just wasn't enough support on capitol hill from republican or democrats for this measure. here's what he said. it was very clear the democrats weren't going to give us a

payroll tax cut. >> placing blame squarely on the democrats not mentioning republicans that also by and large didn't really support this idea of a payroll tax cut here so what is in the plan starting with that stimulus check, that will be in there not clear exactly which group of americans are going to get the stimulus checks but the overall plan here is for a trillion dollars in new spending. that would include liability protection for businesses. you don't want to punish businesses that are doing the best they can in very difficult situations the $600 bonus unemployment check. they want to see a 70% wage replacement ip stead the fear the republicans have is

that unemployment benefits were simply in their view too generous and the idea is that it was forcing people to stay home because the benefits were better at home than they were if you go back to work listen, here's the reality i was a political science major and the one thing that i learned based on the first day of classes you can get elected by giving people stuff and not by taking stuff away. it doesn't matter what party you're in, what century you're in, whatever it is so are we expecting kind of a stimulus fight in some ways the two sides are going to trip over themselves to make sure that they project the message that they are giving the american people the most?

>> that's where we are going to end up ultimately. the democrats don't care about deficits even less you would say. their plan is $3 trillion in spending so there's a huge gap there between where democrats and republicans are. democrats want to see a lot of money in the next bill so we're going to see a big fight here between the two sides but you're right. i have talked to people close to the president that say ultimately his position is going to be whatever is best for his re-election in the fall and what is best in the fall is not to have an additional economic crisis at the end of the summer and that means extending the unemployment benefits so that gives democrats leverage here. whatever they pass, ultimately on capitol hill you can imagine the president just about has to sign it. >> very quickly, the liability issue is going to be maybe the biggest one for most members of the gop because companies can't open up approximate they feel like they're going to get sued

any liability protection for schools or is that just private corporations because your kids aren't going back to school until january so they're probably not going back we need to keep teachers safe but make sure that we can also open up and protect municipalities from getting billion dollar lawsuits. our kids will be remote learning until january. they have been back and forth and just threw up their hands and said we can't bring the kids back you'll see a lot of that across the country. you'll see that in the republican proposal. for democrats this is all about what they call worker protection they don't want to see workers in a situation where they're forced into work conditions that could be fatal to them if they don't go back.

so this is a balance between workers rights to stay healthy and safe and businesses obligation and right to open up and try to do the best that they can. >> all right i find it odd that the time that your school district says they're coming back is january which is like the peak of the flu season it's an interesting date to pick and i'm rooting for you and your whole 16 or 17 kids at this point. i'm rooting for everybody to stay healthy. >> thank you. >> all right obviously a lot to touch on. what is the most important thing out of d.c. for you this week? >> so i'm really quite troubled, brian, and good morning by the way, i'm troubled by the 30 million. we have seen in the last week an increase in the number of people

filing unemployment claims this is showing that the economic situation is not moving in a good direction. at the same time that you see an increase in the number of unemployed, you have also an increase in the number of cases. the u.s. is by far out pacing the rest of the orld we have a need to extend the unemployment benefits and the program that is expiring at the end of this month. so there's a lot converging this week in terms of the economy, in

terms of the pandemic. >> and they're going to have to go back to their nest. the reality is this is a largely government enforced lock down in the states and in parts of the country and people lost their jobs because of nothing they have done. just because the pandemic and they were forced to shutdown but you have a federal reserve balance sheet which is now 7 trillion -- it's funny it's not funny it's 537 women and men, senate house, president, vice president that fight over what, a $4 trillion budget every year we now have a federal reserve board of which you used to be apart which is now overseeing a balance sheet that's almost double that of the entire united states annual budget what do you think about that >> that's exactly right. at the same time that we are looking and policy make rs ars d

americans have to look at the size of the deficit we're in a precarious moment and we don't want to be penny wise and pound foolish at this moment people are about to deal with utility bills, rent, mortgages many people are still, 30 million are not in jobs but while it's completely awful to look at that number, you have to look at it in comparison to the number of jobs that are available. and the last time i looked there were only 5 million jobs available for these people >> i think it was a yelp study over the weekend that a large

percentage, something like half of restaurants never reopen again in new york city and some other major places this is a terrifying time. do you think that the actions that have been taken are the right prescription for an improved economy and what do you see as far as the economy once the pandemic either winds itself down naturally as it will at some point or a vaccine is developed? >> right so the first order of business for the economy is to deal with the pandemic that is what is driving almost enti entirely these extraordinarily devastating results. anything and everything that can be done to deal with it, those steps need to be taken as a set of economic policy measures that have been taken, yes, they have been -- they have been appropriate now they have been slow in many cases and they have been too

late and the problem of course with that is that the benefits are not getting to people -- into people's pockets in enough time to be able to do much. i am concerned about this latest package that is being put forward. of course it's not the final deal because it needs to get negotiated with the house but by cutting unemployment benefits from $600 which was an amount -- it was a rough number but it got the amount out the door quickly to something that is a more refined way of doing, you know, a formula but is really going to cut people's benefits dramatically, i think that this is dangerous it's going to leave people worse off than they were they didn't ask to be unemployed and they don't want to stay at home they do want to work but they

have to have jobs to go back to and that is what this proposal does nothing about. >> more on the stock stories that you need to watch why the company undervalued investment post bankruptcy but first as we head to break, some of your other top stories on this monday. bridgewater associates laying off several employees. according to reports, it's taking place across the company over the course of this month impacting employees and research, client services. the trump administration's coronavirus response coordinator is urging some states in the

south and midwest to close bars amid rising infection rates. speaking in kentucky yesterday, also calling for new restrictions on public gatherings to try to reign in the case load and tech employees that have been delaying vacations due to the outbreak are being forced to take time off by their employers to avoid being burned out cnbc has learned that they are among the companies that have given employees more vacation time over the past couple of months it's dr. deborah burks my apologies for that dow futures are higher we're back right after this.

for fans of one major league team, it might get a little bit harder more of the other stocks to watch on a monday. good morning again amazon news and amazon apparently will not be streaming any games this according to a report. they had planned 21 of the games this season. with that reduced from 162 to just 60 games due to coronavirus the yes network for themselves amazon still up about a percent this morning also watching shares of pg and e this morning saying this weekend that the company stock looks undervalued as it emerges from bankruptcy.

it's kind of difficult to assess how much of the discount is warranted and a years long dividend suspension among other layering issues and google is facing a new lawsuit of misleading millions of users they claim the tech giant did not get explicit content for consume consumers. and it targeted advertising. that's the latest brian. back over to you >> on deck, silver climbing to its highest level in more than 40 years and larry mcdonald is going to be here to break down whether the commodities run may be just getting started and as we go to break a look at shares of taiwan's semi-conductor that's going to be a big stock story this morning they are surging after intel signalled it's earnings report may stop manufacturing it's own chip components. it would be a big beneficiary of

that investors are benefitting. stocks up 10% this morning dow futures up 80. we're back after this.

silver and gold, but while gold gets all the love it's the little cousin that is the real star lately. kind of like when cousin oliver and took all the attention away. according to our friend larry mcdonald silver is having one of it's best runs since the year after the brady bunch went off the air, 1975. silver is up 43% in 90 days. double the return of gold. silver has returned 95% since

the mid march market panel lows. and believe at some point the stimulus is going to drive up inflation and making paper targets and silver dollars worth a lot more no longer just the oliver of the metals market. random but interesting more now on this larry mcdonald joining us now. i won't ask you what you think of it. >> in reading a lot of the reports over the weekend we did a blog you're talking about a very, very high frustration with investors and it's called the cobra effect and what's happening brian is on planet

earth today there's about $50 trillion of bonds that are now below 1.2% so it's a nightmare and here's the most important point it's not about inflation today but the probability of deflation looking out five years has gone from extremely high to now low so in other words, the deflation path of certainty, that deflation path that we had through brexit, trade wars, which was five years certain is now 1 to 2 years certain and if you're a bond investor, that's a being problem. you have to be long gold and silver >> okay. so two things. number one waiting on inflation. at some point maybe it will come when you say convexity nightmare for those just getting a cup of

coffee, what does it mean and why does it matter you have more wealth on the planet that wealth is in bonds and now you have 110 trillion in bounds that are below one and a quarter. remember there's not a lot of upside and potentially a lot of down side as we saw in march with corporate bonds. so if you're in this environment and there's inflation -- not now but if you're in a bond that has a long-term cash flow for tech stock and there's inflation in two years, you have to be long commodities now because there's so much money in that 110 trillion atrisk to future inflation. it's not a lot of inflation now. the down side versus upside.

>> everybody rushed into silver and gold, even to platinum how much more do you think they realistically might have to run, larry. >> if you think about the money in the united states that's in big tech, big tech and bonds so corporate bonds and treasuries, big tech, you're talking $35 trillion and the pool is small. remember here's a big thing. you brilliantly pointed this out ten minutes ago. here's why companies like netflix, their whole valuation is what is called terminal valuation. what that means is they don't produce any earnings now they're just plowing the money back into reinvesting content. those companies valued on a ten year flash flow. and they're extremely, extremely

valuables. that's why some of these companies can trade at 50 or 60 times earnings those valuations on tech can come down dramatically from 40 to 50 times earnings >> you really think cut in half, let's hope not let's talk about the market structure. very heavily weighted and the value of options trading in some cases now exceeds the equity market on which it is supposed to be based. in other words, if you have a hamburger where the dollar were trading options and $1.25 on a hamburger with a buck, are you worried about the market structure concept. >> the money is flying out of the cloud stocks, out of tech. it's going into, we're long berkshire, we're long some of

the banks. emerging markets, metal, you're just going to see this rotation out of, remember, stocks that are exposed to ten year cash flowvaluation and inflation risk in three years. that money is going to flow to the emerging markets. >> it's a big pivotal moment for the markets. also unofficial author of today's rbi. we appreciate it as always, thank you very much. >> that does it for us here on worldwide exchange, dow futures are up 82 in the metals. they're continuing tirhe run i'll see you tomorrow. squawk box and the gang are next (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

lookentertainmentour experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent.

xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. good morning, futures pointing to a higher open on wall street after the dow and the s&p 500 snapped three week

winning streaks last week. in the days ahead, earnings and more earnings. the fed meeting and the stimulus debate treasury secretary says the gop is ready with it's next coronavirus relief bill. plus gold doing something it hasn't done in nearly a decade we'll talk about what this could signal squawk box begins right now. >> good morning, welcome to squawk box right here on cnbc. great to see you has the day off and i think that we'll see her later this week. meantime, u.s. equity futures at