falling behind because they still had the old fashioned toys and games that people didn't play anymore they were going electronic >> we learned how to play hearts with cards. >> no kidding? >> yeah. tip to mom for that one. it also took googling and youtube, but we figured it out. >> way to go >> see you later, bill thanks for watching power lunch. "closing bell" starts now. good afternoon, everyone welcome to "closing bell." stocks higher. tech outperforming looking to make up some of last week's losses on this monday afternoon. let's have a look what the is driving the action progress in washington is helping to boost sentiment there are hopeful signs the surge in the coronavirus cases in the sunbelt may perhaps be plateauing but it's not the cyclicals that you might expect to be leading with that news flow but rather tech names like apple and netflix and semiconductors also hitting a new all time high during the session the nasdaq up more than 1% as we stand with 59 minutes left in

the session, sara. >> come back after two down weeks. coming up on the show, tech investor roger macnamee is with us and gold strengthens, the dollar weakens and home body stocks outperform we'll break down the trades and themes in a few minutes with david rosenberg. let's focus on the key stories mike santoli watching the bounce back rally meg tirrell as the president participates in a coronavirus briefing and the other big market driver this afternoon, the stimulus negotiations in washington new details expected this afternoon. first to you, mike >> yeah. sara market really is a bounce in large tech stocks that is carrying the s&p 500 to the high end of the recent range. pretty well mixed market under the surface. those big nasdaq themes

carrying we spend most of the day, interestingly enough, almost exactly at those early june eyes we were looking at for a while not sure there is any particular reason we have to sit there. 3232 is that level basically that, is where this nasdaq rally has taken the s&p 500. you look at that and say, the s&p 500 is well absorbed a 4% to 5% pullback in the big growth stocks as a group which we saw over the last two weeks. the bounces in things like apple and amazon look a little cursory. they're not exactly showing huge buying interest. we were talking about the trends related to the weakening of the dollar very persistent trend there. this is month to date. this white line here is the u.s. dollar index continuing to go lower and pretty much everything else priced in dollars is higher whether it is gold, the all country world index that is global equities, tlt is long term treasuries, of course crude oil as well. you can't say it's the only thing going on but certainly the unifying factor in what is happening in all these asset markets. what is going to be interesting though is to see if we do

finally get an oversold bounce in the dollar. it seems like a lot of people piled on to the bearish dollar boat and, therefore, see what happens to the other assets on the way specifically, gold which might be kind of the leader in this trend as a beneficiary of both negative real estate interest rates as well that's weakening dollar this is from strategic over there. looking at the trend as a very strong one in the long term for gold he's suggesting and others are suggesting as well if you look at how verbought it, is the price relative to the 200-day moving average, the top 5% of extreme readings that we have seen throughout this history. this is off the charts almost in 2011 that was major topping goal. other times, when you got to this area, it's really just meant the flattening out and then going higher again. similarly right here that actually was a top for a while. be mindful of the positioning here when it come to the trending moves it's not necessarily up, up and

away just because everybody decided that it's going in that direction. sara >> oh, just you wait, mike santoli. dollar index coming in the market zone. i'm all over it at a two year low. calls for more reporting there but first, just help us set up for this afternoon we're going to get it kayl na ia second what is the market expectation what sort of details should we look for that could impact stocks behavior? >> it seems as if the market is assuming that there will be something of a meeting in the midding. in other wor middle. we'll get details on the offering that there will be some further bridge at a reduced level what is interesting today is definitely more the shutdown portfolio working than the accelerated economy reopening up so that could show you there is a little bit of unhe's aboease e fiscal side and whether there is sufficient support throughout the rest of the summer an beyond treasury yields very, very low

still. that suggests that nobody's betting on an upside surprise in the very short term on the fiscal stimulus front. >> yeah. tech adding to the gains by the way in the first ten minutes or so of the hour 1.6% now for the nasdaq. thank you. we'll see you shortly. >> one company moderna saying they have begun the final stage of covid-19 testing. meg has that story for us. >> the first participants in this phase three trial, first one of a covid-19 vaccine in the united states have been dosed. this is the moderna vaccine partnered with the national institutes of health they say expect the 30,000 participant trial could be enrolled in a month or two and then they expect they could see the data of initial safety by early october we talked about how well they expect to see this vaccine working. the fda threshold is 50% better

than placebo >> we think there is a high probability it will be 75% or 80% higher, chance to get to 50% by the fda that is required for approval of course, safety is very important and the safety data is important. and then could we see a much higher positive? i think it is possible >> now they are not the only company approaching late stage clinical trials. pfizer is expected to announce imminently it started that large phase three trial. astrazeneca is expected to start in august. johnson & johnson started the phase one trial today and is expected to start phase three in september if all goes well another company expected to start in fall for phase three. and president trump is touring a manufacturing plant in north

carolina from a company that is partnered with novavax to partner that vaccine we'll be on the lookout for any comments he makes from that trip back to you. >> meg, clearly the market loves to dissect and react to any news on a vaccine and tends, perhaps, one could argue, to react too quickly and overreact at times what about the companies themselves if they in any way bent their typically very tough standards on when news should be released and how much spin should be applied to the releases? and which companies are sticking to the gold standard perhaps lowering it to the silver standard a little bit? >> well, it really depends on which companies you're talking about. but, you know, there are some examples of smaller, more speculative companies that do capitalize on headlines and makes them misleading in order to boost the stock price "the new york times" had an article about that over the weekend. but in terms of the frontrunners in the vaccine race, i would

actually say the way that they're releasing the data is more stringent than we typically see in the drug industry drug companies almost always press release details of their studies as soon as they have an idea of what the data are. because they are material. and so that's what we saw moderna do with the original phase one data they were criticized though because the full data set was not available. and so what you saw pfizer do is wait until they had published at least in a preprint journal. so the full manuscript to put online and then you saw as stas tra citizen he cana wait to public just for context, generally biotech companies put out the top line data in a less release all the time and then publish in the journal. but it's different during a pandemic, perhaps. >> really good to know meg, thank you republicans set to unveil their coronavirus relief package

this afternoon we have the latest on what it looks like and how it might change what have you learned? >> sara, later today we expect the senate majority leader to unveil a sweep of legislative package that's are each spear head bid headed by a handful of committee chairs, the production of personal protective equipment and also the manufacturing supply chain but the market is focused on this financial relief package that republican senators have agreed upon in principle it includes a $1200 stimulus check for individuals, $105 billion in funding for schools with a preference for schools that open for in person learning and then a $200 a week expansion to unemployment insurance benefits at the state level. so that is a cut from $600 a week that was part of the c.a.r.e.s. package that democrats backed it is a slight increase from where they were on that specific

figure last week with discussions hovering around $100 a week level they've come up slightly and the anticipation is that they would have to come up again to reach a bipartisan deal. yesterday the treasury secretary said they have reached a complete agreement we should note with a grain of salt this is complete agreement among republicans and then discussion was have to begin after that with democrats. sara and wilf? >> we'll see what we get while we have you, another important developing story for markets. shelton's fed nomination losing support. what kind of votes does she need and how up in the air is this? >> the nomination of judy shelton is definitely in hot water right now with two republican senators, senator susan collins of maine and senator m.i.t. romney of utah both signalling that they would vote no on her nomination when it came to the full senate floor. she can only afford to lose two

more votes before the nomination would sink there are indications from the senate that her nomination is in jeopardy you remember just a little over a year ago the nomination of herm an cai herman cain was sunk when four senators refused to back him we've seen this story before with regard to the white house's nominees to the fed. it appears with this erosion of support among republicans judy shelton could be next without some 11th hour change of minds >> yeah. new york editorial board not a fan. judy shelton is very different than herrmann cain she's economist. she has a phd. i first met her at a heavy duty economics conference so she hangs out with, you know, hefty weights. >> heavy weights with economics. >> the gold standard and neighbor flip-flopping has questions about how politically

motivated she will be. what are they so afraid of putting her on the fed >> and we should note, sara, one of the reasons why republicans did not confirm herrmann cain is charges in the past. for shelton, there are concerns about the gold standard. but there are also concerns about the independence of the federal reserve at a time like this when mondetary policy and the direction and actions of that agency are so critically important to the direction of the economy. and given the way the president has talked about the federal reserve, they want to ensure that body will remain free from political intervention the she has had to answer questions in writing in multiple hearings on this specific effect members of the senate banking committee were swayed. she passed the committee by a single vote along a party line last week. but she will have to -- she will have to retain that support among republicans who seem to be

defecting one by one >> thank you so much 48 minutes left of the session we're up 1.6% on the nasdaq. up next, david rosenberg has some stay at home trades for this market. plus, we'll ask him about the rally in gold, silver and the dollar's weakness. and then, tech valuations hitting a wall despite today's rally. that debate coming up. you're watching "closing bell. ♪ (announcer) reliability is everything. so, if your network's down, you're down. verizon knows your customers need to reach you seamlessly. your team needs to work from different places across many devices. 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.

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welcome back 45 minutes left of trade dow off session highs. still up 72 points nasdaq leading gold is a huge story hitting record prices as worries over the coronavirus pandemic and u.s.-china trade tensions weigh on investors silver at multiyear highs. the dollar at multiyear lows what's with that joining us by phone, david rosenberg at rosenberg research. david, what does that signal to you? >> well, i think that, you know, the gold and maybe the silver and really it's the silver-gold ratio reverting. so silver can bring some serious

cash up. but that's really fairly obvious that it's correlated with deepening negative interest rates. it's correlated with the weaker u.s. dollar. and correlated with the fact that when you look year over year, you know, you have m-1 growth running at 37%, sara. you have m-2 at 24%. we've taken out the growth rates of money supply in the 1970s that would have made the likes of arthur burns and miller blush. so a lot of this is just monetary creation. and gold and silver are great ahead of that environment. >> david, is it also predicting a recession which at times in the past gold rallies have done or in fact quite the open because of a opposite because of the stimulus will they be correlated with a strong economy >> well, that's a great

question i would say that, you know, gold is actually done better since the reopenings, believe it or not, than it was during the depths of the despair in march and april. i think it really come down to the fact that precious metal complex, i say like almost other, every other asset class is responding to not just what the fed is doing but by what the fed says they'll continue to do. and so you know that at some point inflation will come back not immediately. when it does, the the fed is going to have yield control strategy n real terms, the negative interest rates go more negative that's the real ballast here for the rally in gold and silver interest rates are going more negative than they have during the post-world war ii period this is nil in that sort of

environment. that's what the trade has been even with the economy recovering, it's recovering in part because of the expectation because the sfed going fed is ge more and more negative. >> right so david, you've been giving investors some interesting tips about what themes to pursue and what basket of stocks look good in this permanent shift that we're experiencing as a result of the pandemic. what i like about your list is not the obvious cloud plays or the amazon.comes how are you thinking about which sectors benefit? and what are some that people may not be talking about >> you know, so what we did a couple months ago is i got tired of looking at all the 11 factors because not all of them made perfect sense. so we created a work at home segment of the market. a reopening segment of the market or a recovery segment of the market of hopes that the

market and a payment part of the market what is really fascinating is for all the talk of the value trade which comes in dribs and drabs, what is lacking is the recovery and reopening stocks. they're lagging behind the vaccine hope and stay at home. it seems like a perfect hedge or stay at home stocks. and the vaccine hope assessment that we created in house the point i'm making here is what the world looks like when the crisis ends is true flynn's guess. i would say with 100% clarity it's going to look different than did it before and i do believe that there is going to be a shift in that working from home is going to be a much more dominant force not just now but in the future i've been saying all along and the valuations and technology get in the way you really want to focus on the sectors of the market that have strong balance sheets, obviously

in this environment. but also ones that have utility-led characteristics. so you can argue as microsoft become a utility it's been rated that way appropriately. everyone talks about amazon. a lot of them are concentrated we know the stories and valuations the point i've been making is that in the future -- you don't just have to be in consumer staples or health care you want to model your portfolio. of things we want, not just things with he need. >> back to the big macro themes in particular, we have a fed meeting. we also have significant hopes in washington that a stimulus bill will get close to being done if either of those disappointed what the market's expectation is at the moment, which would have a bigger effect on the stock market >> i don't know what the big inspecttation is from the fed. i think that everybody knows from the guidance that powell

has already shown his cards. he is going to be extremely aggressive and he'll continue to be i don't see what the case is i mean there is no broad expectation for them to do a lot at this meeting. but we always know that we stand on guard to be extremely aggressive this powell fed will be extremely aggressive on the fiscal side, you know, the only thing we know is we're going to get fiscal stimulus what boggles the mind in this environment of incredible uncertainty and with election around the corner is the senate version is so significantly below what the house has already passed way know the president will go for the gusto. i would say that probably not the time to go that light. you go to a trillion dollars, say, on fiscal stimulus at the margin it's actually a hair cut from, you know, what was previously put into the system. i would say that is the fiscal risk is bigger risk than the

monetary policy risk right now >> hard to believe a trillion would be short but after four trillion, i guess that's true. david rosenberg, thank you for joining us >> exactly thank you. >> yeah. rate of change exactly. with the must read research note right now of rose enbenberg resh the next step in the probe of under armour regarding the accounting practices and roger mcnamee helped us pick winners and losers in the faang trade. 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'm reaching for that. 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? i'm on board.

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under armour received a notice related to a previous investigation. the cfo was named. it is related to the disclosure of sales that under armour booked in 2015 and the fourth quarter of 2016. now for some perspective, i can

tell you going back to that period that, was when some of the key customers were going bankrupt, sports authority the main one it was also during the hyper growth phase of under armour under kevin who hailed 27% revenue growth for 26 quarters straight leading to plank stepping down as ceo he is still chairman of the board. what is a wells notice a notice that the sec plans to bring enforcement actions against them consequences could under armour looking at here? here is what the former sec lawyer told me about it. he sthed aid this is about striy legal proceedings. realistic consequences for the company are without admitting or denying consent, not to violate the books and records provisions in the future and a civil monetary penalty the consequences for the individuals are the same although, the sec also can pursue an officer and director

bar which would prohibit those individuals from serving as an officer or director of a public company. so basically, under armour's looking at a fine here if it settles. under armour says they maintain the actions were appropriate and intends to work towards a resolution of the matter with the sec. as far as the time frame, it's usually a few months from here if they set which will is what typically happens, especially if they do not have to admit here fault or guilt or liability and just have to pay a fine. >> in terms of time frame looking backwards, do we know how long this has been pending kevin plank is the ceo at the turn of the year which feels recent now when you think about the scale of perhaps the questions that were being asked of his team. >> this wasn't the only thing that was being asked under armour after growing for so many years so quickly did

really stop and had to, you know, go through some questions about profitability and right sizing the business and the questions of growth at all cost came up. thats wh that's when he pintappointed th number two ceo to steady the ship there were questions at the time when kevin stepped down around this disclosure of this investigation. so that is certainly part of the mix. i don't know how long the se krechsec has been looking into that it was losing shelf space and no longer resident with consumers and competitors like nike and lululemon and adidas were. >> it's 2u% today. broader markets are nicely higher nasdaq is up 1.7% now with 31 minutes left in the session. still to come, baseball season in jeopardy. google is telling employees to work from home until july 2021 what those stories can tell us

about business and economy going forward. the as we head to break, here's a check on bonds bouncing back after early declines we had a record low auction for the five year note earlier yields ticking higher. experience the adventure of a bigger world in a highly capable lexus suv 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 right now, switch to t-mobile and get four lines of unlimited for just $25 bucks a line. with access to america's largest 5g included.

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28 minutes left of trading hopeful news this weekend from coronavirus hot spots. florida reporting an 8,892 new cases. that is the state's lowest talley since july 7th. arizona reporting 1813 new

cases. no new deaths. hospitalizations also showing some slight decreases. globally, the outlook is a little shaky britain is requiring travellers from spain to self isolate for 14 days after a surge in cases there. curbing summer vacation plans. vietnam also locked down and evacuated tourists from the cities after seeing the first case in months and hong kong is banning in person dining and limiting gatherings to two people the mlb hitting first strike of the season the miami marlins postponing the home opener after several players and coaches tested positive this also causing the yankees-phillies game to be canceled after the phillies played the marlins yesterday what we can tell you is following some of the lines and the trends and the hot spots like arizona, florida, even california looking at the averages on cases, even on deaths and on hospitalizations, fingers crossed, it looks like

sitcoming down off that peak. >> we'll see >> should mention some of the european related travel stocks airlines did trade lower today they're on the back of that reversal of permissions for traveling within europe between the uk and spain as it relates to this past weekend time now for a cnbc update with sue herrera. >> hello here's what's happening at this hour california's attorney general is investigating what amazon did or did not do to protect the workers during the pandemic. that's according to a judge's court filing as reported by reuters. the ag's office tells us it does not confirm or deny the existence of investigations. owners of volkswagen's diesel cars received nearly $10 billion in settlements after the carmaker admitted in 2015 it cheated on emissions tests the federal trade commission says 87% of consumers chose to

return the cars instead of getting them repaired. and oprah is getting back into the talk show game first episode of "the oprah conversation" will debut this thursday on apple tv plus. a second episode is set to come out on august 7th. you are up to date that's the news update at this hour sara back to you. >> we don't know who the guests are yet, right >> it is topical as to what is trending in the news and she's going to take up some of the really difficult headlines. >> but what i didn't gather from the release, i'm going to watch anyway she is a legend. but whether there are sort of big stars who are news makers themselves or educated people to talk around the broader topic even if they're not the kind of front line people that make the news either way, i'm sure it will be very well done. >> i'm looking forward to sampling it. >> i'm sure she'll be very well paid for it too. >> oh, yes >> sue, thanks >> you got it.

up next, the bull and bear case on a software stock that tripled since the march lows and apple, alphabet, amazon all got price target heights today why are some saying that tech is hitting a wall we'll debate the calls as we head to break, take a look at hasbro. the toy maker reporting a 30% sales decline in the second quarter. and speaking of toys, don't miss jim cramer's interview with the ceo of mattel tonight at 6:00 p.m. on "mad money." that stock getting hit coming off a better quarter last week barbie made a comeback we'll be back. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf

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cloud computing etf, colu is up 40% year to date as part of the work from home trend we're taking a look at one of these key software momentum stocks that we might not have focused on enough. >> that's right. shares of coupa soaring 20% since they hit a 52-week low on march 12th demapp demand for cloud based software soaring. they benefiting searching supply chain manage friend on site to online it is powerful but still user friendly and that's partly why coupa has a wide range of -- the bold case is it is beginning to penetrate a $56 billion market for the software and can retain companies for on going subxringss where it gets 85% of the revenue. the bear case, coupa software is

not in the budget for companies reducing spending due to pandemic use of artificial intelligence could negatively impact the subscription renewals. back to you. >> thank you so much for that. wall street is betting on big tech, of course. has been for quite some time, particularly this year and earnings continue in that sector this week amazon getting the price target raised by multiple fermz today wells fargo raising the price target wells fargo bullish on alphabet. raising the price target to $1,750 from $1575 expectations of strong top line growth. and j.p. morgan raising the prit target on apple from $425 citing ample upside on the group. raymo raymond james citing returns is why they should fear in investing mega cap tech.

for more, let's bring in brad gastworth. thank you so much for joining us must first question as it relates to earnings is did we learn over the last week or two with names like microsoft that earning dozen have the ability to derail the amazing momentum that has been driving this sector >> yeah. it is such a good question:i mean if, you look at the stock performance large cap technology, it's been performing unbelievably well over the last several months nothing goes linearly. you need to go back at certain points i think with the four big companies that are going to be in this congressional hearing, amazon is going have a stellar top line report. you're going to see an unbelievable report from revenue growth from amazon i think facebook and google probably have a little bit more risk because of the ad snepend q-2. i think expectations are quite low for apple.

if you look into the second half of the year, this next upgrade cycle for iphone is going to be significant but next year is going to be a real mega cycle in our opinion. i think if you look at certain, you know, the four names, i think amazon is by far the favorite i put apple number two and i would say probably google is in there as well. >> it is going to matter beyond just some short term price action microsoft sort of got a thumbs down even though it was fine netflix got a thumbs down. ultimately, you know, all of you analysts kept saying long term this is the place to be. what is happening in the world and the environment and with consumer trends, that bodes well for all of the companies >> it's a great point. this is where i think a lot of, you know, i wassen ott research side and look at this and get really confused in terms of you look at unprecedented times. the number unemployed is

unbelievably high. it is being fueled by artificial money by governments propelling the market overall, the market desmand not great. you're having this tremendous global stimulus program that is really helping out, you know, financial markets on the global basis. then if you look at asset classes, where else can you invest and get yield i think that's the reason personally why you are seeing this, you know, the v-shape stock recovery you can't really go into fixed income markets and expect to get any return and, you know, equities really offer the best risk/reward in terms of return on investments i think large cap, there is still opportunity. i expect a pullback. i agree with you, sarah. the market is certainly pricing in this recovery before it is actually up. >> what do you expect from apple's earnings i guess on the surface, you could find a couple of issues whether that is, you know, weak consumer with their expensive

product list or china fears that could make this tougher than some expect. >> yeah. i mean, first of all, iphone units are not going to be great. i think almost everybody is expecting that so i think on the unit front, you know, just recall that iphones produce a significant portion of apple's profitability. they generate a tremendous amount of cash service is becoming a more important piece. during this pandemic, people at home are consuming content they're going to that app store and buying thing anticipates apple certainly benefits from that so i think this quarter is not going to be that exciting at all. i think guidance is going to be ho-hum but in terms of the next generation iphone, we're expecting a roughly in line launch which is a little different than the street. most people are expecting a little bit of a delay. we think it's going to be pretty much to normal i think you're going to see the lineup that is priced attractively i think apple really wants to

get a price cut again this year. i think that will resonate well with consumers >> it's going to be an exciting week of tech news. brad gastwirth, thank you for joining us this is the last commercial before we go into the close. up next, "the market zone. draftkings is sinking and why ceos are using stock not cash to buy companies. that's all coming up toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu.

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who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. welcome back of 13 minutes left in the trading day. cnbc market's commentator mike santoli theer bre santoli here to break down the crucial moments of the trading day. let's get things started off with the broader market. the nasdaq outperforming, bouncing back after the first two day losing streak in two months at the back end of last month. s&p 500 is up 0.8% the we're near session highs for the indices. mike, all kind of day we've been

framing this as a reversal of last week's trend. it is like monday. they kicked off with tech outperforming before that slipped throughout the rest of the week. >> that is true. no way can you necessarily say what is going on out for the next several days. even this break in the large growth stocks that we saw over the last couple weeks did not really disturb any longer term trends we're bouncing from a short trend line that they bounced off in june as well. really nothing has been disturbed here in terms of the overall patterns although, you could argue that the broader market is kind of churning and stalling out. they can say the market is okay and resilient. their in place the banks are weak today >> guys, talking about the markets, stock up 100 points here the dow front and center is the

dollar it is at a two year low. five-year low versus the swiss frank. we're seeing extreme dollar weakness why? the federal reserve, number one. expectations in the market that the fed will stay very active with low interest rates for a very long time and stimulus flowing to support the recovery they may extend more guidance as soon as this week like yield control or inflation targeting the bond market starting to price in negative interest rates. the u.s. is on the worst in the world with case loads and virus controls which ultimately could hurt consumer confidence and the u.s. economy relative to other countries like germany, south korea and china. the larger question is also out there though for the dollar. persistent and rising tensions with china leading to more questions about whether the

dollar is going to lose the let serve currency status. longer term issue that smart investors are on for a long time ray continues to highlight this risk just warning today in an interview of a capital war between the u.s. and china also, keep in mind, everybody's been betting against the dollar. dollar is short positioned the futures market are at their highest level we've seen in two years. last time that happened, the dollar quickly snapped back higher so watch out if you're filing into this trade. the fed is going to be a key test on wednesday. if there is a hint of more aggressive action from the fed because of the weakness in the economy, the weak dollar could keep weakening ultimately, what that means for stocks is that if you're invested in a company that does business abroad, this is a huge competitive advantage, paul hickey, where we've seen the international stocks or the stocks in the u.s. that do business abroad do particularly well because of this tail wind when do you think we'll see that show up in earning ands what companies would you be buying? >> i think to your point, you

know, we break the s&p 500 into companies which generate more than half of their revenues outside of the u.s. internationals we call them. and companies that generate 90% or more of the revenues inside the u.s. domestics so thischart we're showing right here now is relative strength of the domestics versus the internationals and then versus the u.s. dollar index. what you can see here is in the last few months, there's been a clear correlation of the domestics underperforming the internationals by a wide margin. so what you want to focus on is companies with more international exposure and what you tend to see sectors that have that exposure, you see it in industrials. you see it in energy you see also in technology those are sectors that have been benefiting and will continue to benefit. even consumer staples to a degree they have a lot of exposure outside of the united states i think outside that period just

in march where the dollar index went crazy to the upside, the correlation for the last year and over time is very consistent so if you do think the dollar is going to continue to see some weakness which we do although not to the same degree that we've been seeing over the last week, you want to focus on the companies with more international exposure you have google or alphabet. you have even citigroup is a bank which has a lot of exposure outside of the united states it's something to be aware of when you're thinking of individual companies there are companies with look and exposure >> step ago way from individual stocks, but if we did see a more risk up environment again and equities pull back in a meaningful sense, do you think that would likely trigger a dollar rally again in the same way that it did in sort of late march as it were or mid march? >> no.

i think that's correct i think that's the main thing to look out for in terms of aside from just oversold conditions and sentiment getting two one sided. yes, it would take a scare in the global markets to get an dollar rally going and then it becomes a test for the other asset classes that have been moving to see if it that's all that's been going on. >> a big factor is the euro which makeses up so much of the dxy. shares of moderna higher today the company received another $472 million nunding from the contract with the bioenvironmental medical research company they're starting phase three trials of the covid-19 vaccine up 9% or so today. and, mike, again, another factor when we get this type of news that helps futures markets in the mornings and can help set the tone for the day today we built on that tone throughout >> right i don't think if you look at the internals of today's market it's really trading as if the

investors are pulling forward the estimates when we get a vaccine. but it's one of those things that is a reminder for people to not get too negative within the six to ten to 12 months typical time horizon of the equity markets that there is likely to be progress along this front because of so many being thrown at it so, you know, i think can you have it two-ways and say yes it's in the positive but nobody really thinks that we're getting to a game changer immediately on this front. >> well, what's interesting is that you've got that positive vaccine news before the open and typically you'd see the airlines rally all the reopening plays rally. airlines are down. boeing is the worst performer on the dow. has the script been flipped? was it too easy to buy the airlines on better vaccine news? >> think think is part of the issue. i think we're talking about tech

and nasdaq doing well. this is a repeat of last monday. the nasdaq is up over 1% 7 of the last eight mondays now. and so i think it really is starting off the week on a strong note here but i think as far as the broader picture speaking here, we think the -- with the catalyst for the weakness in the reopening trade in early june when you start to see flare-ups in the cases down in the sunbelt florida, texas, arizona, california and by all statistics now by case counts and we track, you know, google search results, we're seeing the -- it is looking increasingly like the peak in the case growth has passed us. i think over time that should bode well for some of these more cyclical sectors maybe not specifically the airlines but companies tied towards a reopening of the economy. and when you -- you think about that, you think about industrials. and getting back to our comment about the dollar, that would create more of a risk

environment where the dollar would, i think, continue to see some weakness. and international markets. >> i want to hit draftkings before the bell as well. shares getting hit new coronavirus concerns for major league baseball. we have the details. >> that's right. draftkings stock getting crushed today. it was down more than 10% earlier in the session investor concern because of multiple major league baseball games tonight that are postponed. draftkings stock tripled since march as they were expecting a lucrative return due to pent up demand from sports gamblers. draftkings said they had the second best betting day. despite other offerings in golf, soccer, the wnba, nascar and foreign sports but it's going to be an interesting next few day here's with baseball. back to you.

>> eric, thank you mike, how do you think about the delayed return to sports here and what impact that could have on the markets whether it is draftkings or retail trading or what >> yeah. i think it's -- it's completely -- i think a hypothesis right now that there is a ton of would-be sports betters that are now driving into stock option ands things like that obviously on some level anecdotally, some data supports that but what is interesting is the draftkings move, the stock really did -- has this huge run. people are thinking it was a one way, you know, reopening trade for sports not that they were going to go back to normal but that you were going to get more and more. and at least this puts a little bit, you know, a little bit of a complication in that picture games not bet on, it's not like there is pebt nt up demand on t road and that is going to get spent again. >> i'm looking at the sectors, mike most are higher. technology and materials leading.

we have two minutes to go in the trading day. what you are seeing in the market internals >> they're firm. although maybe not quite as much as the top line indices will tell you if you look at the volume breakdown, about 50/50 for much of the day slightly better than that. so it's basically telling you it is a fairly well mixed tape. we mentioned sector stuff earlier. it's really a haves and have not story. banks no the able to get anything going it's down 2.5% you see the semiconductors smh up is 4% that really does remain kind of one of the better beacons of underlying strength in sort of industrialtechnology >> we have just over a minute left of the session. and as mike pointed out, we'rer

in the session highs fl going to summarize a couple of the other asset classes. the dollar is weaker 8% as we've been discussing. that's been led by euro, sterling, and yen strength today. oil prices are up about 0.8% gold up 2% this monday and for the month of july now, up about 7.5% extraordinary run for both of the precious metals. back to the equity market. under a minute left. s&p 500 up .75%. the dow 1% nasdaq leads the charge, tech very much driving things having underperformed last week. the nasdaq is up 1.6%. so within the s&p 500, we do have technology leading the charge as expected materials, real estate, and consumer discretionary following behind two sectors in the red utilities and financials banks not really doing too well today. kbw bank index down 1.5% as mike

saying taking out the conviction in this rally today. the banks aren't playing a part today. the bank goes, dow up 115% nasdaq composite leads the charge up 1.7%. welcome back, everyone we're back here on cnbc. senior markets kpen take thor, take a look at the day on wall street dow was up 116 points. high of the session was a little over 150 points. but we did end there on the high note the s&p 500 up .75%. utilities and financials were the only ones to close red just some perspective, the s&p 500 is now less than 5% away

from a record high 4.5% away. up from the march lows that we saw back on the pandemic it is up 47.7% so very much hanging ton the strong gains lately. the nasdaq is the big winner, up 1.7% coming off two down weeks into heavy duty earnings from mega cap technology which are all coincidentally happening on thursday the russell 2,000 index of small caps had a pretty positive day they're closing higher still down 11% for the year. coming up, we're going to ask roger mcnamee for the outlook for the tech sector and why one of the big tech companies at the center of the congressional antitrust hearing is not guilty of bad practices and they're getting to reveal the latest coronavirus stimulus plan we'll give you the details as soon as that happens we're expecting that to come within the hour.

joining us to talk about the market though first, the spoke investment group founder paul hickey with us charles schwab's multiasset strategy manager joins us. welcome. first you to, mike, on what we saw today. a little bit af coof a comebackm tech and how that sets us up and what was the driver behind it? >> you know, it looked like pretty much just a bounce in a strong uptrend for big tech. if your concern is the leadership of market dominated by large cap secretary ullr growth stocks had broken stride in major way and therefore the rest of the market was going to struggle you pretty much didn't have anything to work with today. you did see a little bit of a bounce in the names. overall, s&p 500 remains within this kind of trading range you still have kind of a selective market i mean, we talk about, sara, you mentioned the s&p 500 is 5% away from the all time high 40% of the stocks are down at least 20%.

so what that tells you is it's not the overall market whistling past the graveyard and ignore what is going on in the economy and ramping stock prices what it is telling you is the makeup of this index is enough oriented towards the direction of the resilient business models that it's been able to bridge equities through this period. >> omar, do you think there is a lot of macro risk in the week ahead whether or not stimulus actually gets pasted and with the fed meeting too? >> well, absolutely. i think it's -- this is a very busy week. we have been discussing all day. you know, we obviously, have you know, the expectation of what the market is waiting for that stimulus package the market is optimistic about where the market wants to go i think at the macrolevel, that will set the stage for what the fed may do in terms of their

outlook of what how long this -- the program will go. you put that on the top, we have 200 companies reporting this week and the major bellwethers on thursday. that actually comes up with a very big busy week that we're going to have to go through. >> it's not just tech earnings, paul hickey. we're going get a fed meeting. and there are great expectations from the fed even if we don't expect them to necessarily do anything just as far as the tone and the signal and then there say gdp report in the second quarter but this could be a shocking, what, 30 to 50% i've seen economists forecast decline for the quarter? do you think the market factors all this in? >> i think the gdp report, the markets factored in. i think i would err on the side of a less disastrous than expected report on that front.

the fed i don't think is really a lot on that front. the fed has really telegraphed the fact this they are not doing anything and this environment, i don't think they want to step in and cause any rough road in the economy. i think for index levels, that's the biggest risk the tech companies that reported are large tech like companies. netflix and microsoft. they both disappointed the less small headline companies are reporting very good results exceeding estimates on both earnings revenues. one out of every ten companies that reported has issued an earnings triple play which means they beat revenues and guidance. we talk about draft diagnose kings, i think the charts of gold and silver that we show show a better picture of where

sentiment is people don't flock into the metals when they think severing going to be, you know, all right. there are record joit flooutflos think there is large cap tech may be a little ahead of itself and expectations may be high for the rest of the market, expectations if you were to say anything are too low really rather than too high >> paul, to the point about gold rallying and what that might imply, is that offset that conclusion it's like polar opposite messages be delivered. >> they rallied but not nearly to the degree that gold or silver is rallying i think copper is down in the last week. you know, that's one we focus on a lot. gold has gone up silver has just gone through the

ceiling. think there say little bit of caution under the surface. people are worried about the fed. people are worried about gdp and all these things we are talking about -- reasons to be worried about the dollar, we're talking about them all right now. i think when you talk about these things, they tend to be well priced into the market. >> don't forget bitcoin. >> yeah, big moves across the board. weaker dollar helps everything, it seems a surge in all stock mergers is sending a warning s sending a warning sign to the market. >> we've been picking up on the themes they're paid for using stock this year nearly 29% of the volume was trans acting using stock. that's the highest proportion of all stock deals in 14 years. going back to the prefinancial crisis days, before that, all

stock deals were popular during the dot-com boom some of all stock deals is analog devices and maxim and chevron and noble energy now in periods of uncertainty, it may be prudent for dmpz to conserve their cash rather than use it for deals or on things like buybacks. couple that with lofty levels in the markets, the ceos are becoming more inclined to use stock as a currency for deals especially if they feel the stock prices were fully valued guys >> leslie, thank you very much for that mike, i mean clearly you could get the sim wiple conclusion th stock market values are stretched. as leslie points out if, a company went out and used the cash balance to buy someone at this stage, they would be met with way shareholder revolt. >> right yeah certainly companies are a little more protective of their cash cushion on their balance sheets. although, on the other hand, debt is almost free for a lot of

companies. so the market is almost begging them to use cash in some respect. the other thing i mention it is requires that the target company accept the acquiring companies equity in a stock for stock d l deal whether that means their eager to sell or don't think it is radically overvalued is an argument here. i do think in general it fits with the idea that there is a net cautiousness among management's at this point and will feeling they wouldn't be rewarded for turning cash into assets. i remember when microsoft bought linkedin for cash and the market celebrated that zero earning cash is being turned into a business even fit wasn't a very profitable one >> does that -- does this continue, omar if so, which sectors are you looking at for more stock deals? >> well, obviously a big tradeoff of all the uncertainty that is coming ahead

we have to remember that we're in a market that is starting with a health crisis and that health crisis has not been, you know, fully resolved we have promising news regarding vaccines and treatments down the road at the same time, we also have the u.s. elections coming up in the next few months and the cycle is just going to begin so the uncertainty surrounding that will increase volatility. and when you actually think about the geo political between u.s. and china, you by this what that might effect in terms of consumer sentiment we're going see volatility going down the road. we had the bottom of the market in march at the same time, we usually have the fed -- [ inaudible

we actually have seen people repositioning their portfolio. think about the weaker dollar and basically be in favor of international market we also think about, you know, the potential for health care and some of the traditional stuff that has positioned themselves well for this environment will continue to do well you know, home building is another area people spend more time at home they're actually continuing to do well and potentially have good earnings going into the next few quarters. >> haul pickey i want to come back to the big tech earnings. you mentioned microsoft and netflix during negative reaction in terms of share price the following day. they did actually beat their quarterly estimates on both lines. what do you think we would see in terms of share price reaction if any of the big tech names miss outright their earnings estimates? would it be very large negative reactionors still enough momentum behind these names to prevent that >> i mean, i think -- it all depends on the reasons, you know, if they have disappointing

numbers and the reasons for the weakness is it a delay if the product you saw intel last week, they have manufacturing delays. so it all depends on the fact that the ultimate thing to think about going in is expectations for the four stocks on thursday are high so the bar is set high for them. and so if they do have any, you know, flies in the ointment, you're going to see a negative reaction in the stocks >> thank you all for joining us. >> thanks. >> the ceos of apple, alphabet and amazon are set to testify on capitol hill this week not just earnings. faang tech investor says one of the companies should not be accused of anti-competitive practices practices. find out which one that is and how the hearing could impact the other tech titans the we're waiting for results of the new coronavirus stimulus proposal. we'll have instant analysis once that plan is revealed.

we'll keep you posted. ou ce isshldomth hour. "closing bell" back in just 09 seconds. some companies still have hr stuck between employees and their data. entering data. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste.

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mcnamee. he was an early investor in google and facebook. great to see you as always >> great to be here. >> so what -- why is it that you think that three of those four companies have done anti-competitive behavior but also whether or not that is really going to be proven or confirmed this week at this hearing? >> here's what i tell you. i think that anti-competitive behavior is pervasive in our country. we deregulated for 40 years. so the traditional role that government has played, it's setting rules and then enforcing them fair sli largely lapsed and now you have a situation where in every single industry concentration is greater than it has been in almost 100 years and the tech sector is no different. i actually believe all four of them are guilty of anti-competitive behavior. but only three of them are really guilty of violating antitrust laws so when i look at apple, very simply put, what they do in the app store is clearly

anti-competitive and it's in my opinion, it's unfortunate but it's not a threat to the dme. it's not a threat to democracy or to public health. where if you look at both google and facebook, what they have done in terms of their -- the monopoly power that they have is they use it in ways they're not just bad for competitors but are actually also bad for the people of the products, the people who advertise on the platforms and the people who supply them with stuff and with amazon, it's a little bit different from that. but again, there are lots of issues about the use of market power and ways that are harmful to employees, you know, whether they're harmful to the communities that the employees live in as well as in case of amazon the facial recognition products whether it is ring door bells or recognition have been shown to have really sug bias problems. at this particular time, people are sensitive to it. >> does this hearing change

anything beef been talking about the issues for some years now. and depending on your answer to that, do you think the election is something that might finally trigger action >> i think that you're asking exactly the right questions. i think, in fact this is a best of the first step in a long process. nothing is going to happen in a hearing with four companies on stage at once. i mean, each one deserves a multiday hearing i don't think apple is a good use of time although i do think that they should be forced to change some of their anti-competitive practices the other three deserve really deep scrutiny and candidly, the antitrust laws that are on the votes today are not enough they were designed for an industrial economy we live in a data economy now. and so other things have to happen >> we have to interrupt. we're going to come back to this conversation breaking news on the gop stimulus bill. and we have that for you >> the senate majority leader is speaking on the noor right now outlining what they are calling

the heels act, a stimulus package that stands for health economic assistance liability protection and schools it is co-authored by nine republican senators who chair the committees with jurisdiction over those areas and will be speaking following leader mcconnell on the floor momentally we expect to get more information about the dollar figures of each of the proposals. and what they would mean they're reporting that a house speaker nancy pelosi, the top senate democrat chuck shum eastern the treasury secretary and white house chief of staff are meeting at 6:00 p.m. this evening. nothing will pass into law without bipartisan coordination. but he also takes a slam at what he calls the manifesto, the socialist manifesto that democrats passed earlier this spring the only specific pricetag that we are getting from the leader at this moment is the more than $100 billion for schools that

would prioritize those schools that reopen for in person learning we'll keep listening and bring you more as we have it back to you. >> i may as well be asking a question that we don't have the answer to yet. but no answers in terms of some of the key differing sticking points between the two parties, whether that is unemployment benefits or states benefits? >> no, and to be sure when they passed the package in may, they called it a market of priorities the outline today is just that it is a marker of their priorities and from there the two parties will have to find some grounds for bipartisan cooperation in order to get a law that actually tackles the issues >> it looks like the package is going to include direct payments to americans of $1200 each unemployment relief. more money for paycheck protection plan and to

inventivize protection of ppe in the united states. so is the sticking point here going to be over unemployment or over something else? it is schools which we know the republicans are hitting hard will get money but need to open. >> yeah. a few points there number one liability production is going to be a big battleground here democrats do not believe that any business or institution should be shielded from getting sued if covid-19 is spread on its premises that is number one number two is this expanded unemployment insurance the c.a.r.e.s. act has given individuals $600 a week. they're looking to to propose $200 a week instead of the $600. so then number three, state and local government the republican package does not have any aid that i'm told for

specific states and municipalities the democratic package by comparison had $1 trillion so there are a lot of differences between the tw sio s sides. we'll see what they come out with in the end. >> thank you so much for that. she is going to continue to big into any headlines that come out of this and join us again as and when she has them. let's pivot back to roger mcnamee. look, we're talking about the possibility of bipartisan agreement on something and something you think will be easy to get bipartisan agreement on still lots of hurdles to get over i go back to my earlier question do we need an election and both houses of congress and the white house to be a part of the same party to ever see any action on this on the big tech side of things >> a few months ago i would have said absolutely yes. there is concern on both sides

of internet platforms. they look at it differently. the issue as i see it is that antitrust is an essential tool for reforming. and this is really important for investors. what people forget is that every major cycle of tech starting with the first one, the creation of the computer itself in 1956 began with an antitrust case so not just computers but also all of silicon valley off transistor, data equipment and the internet all of those things were triggered by antitrust investors should be really strong proponents of this. the problem is that what is wrong with facebook and amazon and apple, what i'm hoping to see is a package of things that change the way we view the safety of tech products requiring an fda before you can release a product. it doesn't take ten years. i mean it can be done overnight as long as people certify and

are held accountable that things are both safe and free of bias if we do that, i think we'll see an explosion of growth right now a lot of great opportunities don't get pursued because they're blocked by the dominant ones. i think investors should embrace this process and they should be strong in pushing for it we had an amazing ride in stocks it is time to see the next wave come up. >> roger, though, if you look at europe as an example where they've been much tougher on regulating the big technology companies under antitrust. they have have a tough commissioner of sdr. the president there is, yes, under pressure yes, investigation and some rulings against them but ultimately, it just -- it just ends up as fines. and it ends up as penny change for so many stocks that continue to get bigger and bigger every

day. is that the precedent here >> i think the most important thing is to force competition into markets get people who operate markets to choose between operating the market or participating. you can't do both. >> you're right. the europeans are at a huge disadvantage now our -- the reason the presidential election matters is because immigration is so essential for the success of our tech industry. having students from outside the united states going tower grat schools and staying here and starting companies that is how silicon valley works. and under the trump administration, we ended that. and that is going to be our ability to participate in the future technology directly dependent on having a more immigration friendly administration in washington so the election will have a huge impact on what happens there but again, investors i think have a voice this is something that, you

know, in the united states we're really good at this. we're better at it culturally than other countries and right now we're tying our arms behind our back because, you know, the half of our grad students that used to come from overseas now can't come. and that's just not going to help our economy >> roger, thank you for joining us >> thanks for having me. >> up next, mike santoli will have a look at where the stocks are starting to look expensive compedar to earnings expectations we'll be right back here on "closing bell. e lexus suv. at the golden opportunity sales event. get zero percent financing on all 2020 lexus models. experience amazing at your lexus dealer. and their financial well-being. since our beginning, our business has been people. on all 2020 lexus models. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities

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drug mazekers are refusing o join a meeting. >> so president trump mentioned when he signed the four executive orders on drug pricing that he was inviting pharmaceutical executives to the white house on tuesday of this week to discuss how to lower drug prices. he said essentially if they could reach an agreement on how to do that, he wouldn't put into effect the most onerous of the four executive orders once the tracing is signed. that would draw some drug prices by whan is around the world in other countries.

[ inaudible that meeting was canceled in part because the drug industry lobbying groups refused to send members because of these executive orders i reached out to pharma and they said right now our industry's sole fouk he is is trying to figure out how to beat covid-19. [ inaudible it is druisrupting our work all of this -- [ inaudible they set prices for medicines in the united states. so, guys, looks like here the pharmaceutical companies are going to use its work on covid-19 vaccines and drugs -- drug pricing debate has been going on for, you know, at least five, six years now. back to you. >> meg, thank you. not the perfect line

but we awe saw tll saw the stat screen there is legitimacy for the work they're doing at the moment. we'll see if that goes down badly or number never a popular topic for sure let's pivot and get to mike taking a look at earnings forecasts. potentially a bottom in the short term. >> if a bottom of expectations one of the lessons a couple weeks into earnings season is this quarter showed analysts cut the forecast far too much. you're seeing the beat rate well above historical norms but here is the 12-month forward earnings estimate. this orange line here. it has curled up guess what it is pretty common pattern that stock prices bottom and surge ahead of that inflection in earnings you see much more milder versions of that like back in 2016 and also, of course, late 2018, early 2019 now nothing like this huge drop and mild response in the 12-month forward earnings estimates. the big question is the size of this gulf right here let me clear it up so here's how much stock prices

are down in aggregate since then and here's the angle of decline in earnings forecast >> you can try to explain or rationalize it by saying where they have an advantage over bonds at this point and the way they haven't in decades, all the rest of -- doesn't change the fact that really when this earnings level gets back to 168 or so, that is probably the key variable is just how quickly we can have some kind of a bounce back and it's very difficult to say right now. guys >> and even more difficult without guidance thank you. up next, we'll fwet get rean to the smus antilupl unveiled. find out how it can impact wall street and the economy

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act. it includes unemployment relief, more money for the ppe, pat check protection program and a program to incentivize production of personal protective equipment in the united states. we're learning more details now as the sponsors speak on the senate floor we'll bring you them as soon as we get those headlines but we're starting to get broad streaks. joining us by phone, ed mills, washington policy analyst at raymond james. the republicans are going to present a $200 bump to unemployment benefits. currently that's at 600. it expires at the end of this week this is the opening sell for republicans. what is going to happen to those people on unemployment benefits, the 30 million of them right now under the c.a.r.e.s. act >> yeah. obviously, the last check so far has been sent for most of the unemployed individuals and so unless congress acts, that's next check is not coming.

our expecttation is that congress will act as you highlighted a $200 per week extension is what the opening bid from republicans will be we have been of the belief it the settle in closer to the $300 to $400 range. when you hear the conversation about it should match prepandemic wages or it should be, you know, not a disincentive to return to work at a $300 per week benefit, that puts the benefit with the average state benefit at $330 right at the median wage in the united states and so i think that we could see negotiations going towards establishing unemployment at the median wage in the united states >> i guess at the other point on the unemployment question though is the base level states unemployment's benefits, the median of that typically lasts six months which will be some time in september if you lost your job in march. so even if we get some extension of the cares act boost to

unemployment benefit, there are all sorts of cliff edges as we go throughout the rest of the year >> you're right. what we need to remind ourselves is with covid-19, the economic impact has caused such a demand shock that we have tens of millions of americans without jobs and unfortunately we do not have tens of millions of job openings in areas where things are just not fully safe to reopen so so the federal reserve is doing whatever it takes. congress stepped up and has passed a massive amount of fiscal support to this economy and the expectation that we have is congress is going to continue that it may take a little bit longer than we hope one thing i highlight in this act we don't see an s that stands for state and local government right now it stands for schools. what we do know from the great recession is that supporting state and local governments is one of the ways in which we can

ink this out of an economic crisis sooner rather than later. well, and jobs can which is what this whole thing is about can you explain quickly, ed, mcconnell says that liability protection is going to be a key focus here what exactly is that about and where are the democrats on that >> yeah. so what we heard from republicans is that there will not be a phase four bill unless there are liability protections. what we've seen from democrats is in the act that congressional democrats passed two months ago there was no liability protections. democrats have generally stated that they're not in favor of this but they have not demonized it either i think democrats recognize that this is the price for getting phase four done. and that they will be willing to do some level of liability protection as long as there is state and local aids and extension of unemployment benefits and as long as there is another round of fiscal stimulus checks that protection probably is

going to be kind of, you know, more limited than republicans would like generally speaking, it's not going to allow individuals to sue businesses or their employee if they get covid-19. >> quickly, i want to get your take on the election some of the polls of late, of course, as everyone covered has given vice president biden a big lead but the betting market still puts it at quite a small lead. what is your take? >> yeah. we have said that at the election were to be held today we do give biden the edge. but there is still almost 100 days until the election. the anniversary of the widest poll lead that dukakis had, there is a ton of time between now and the election but right now, biden is well positioned senate democrats are positioned to make it run and a democratic sweep its something that market should be paying attention to >> thanks very much. >> thank you >> still ahead, we'll get more

reaction to the senate ren stimulus planned when we are joined by steve scalise. that is still to come. ♪ ♪ ♪ ♪ ♪ ♪

welcome back time for a cnbc update >> hello, everyone here's what's happening at this hour the university of notre dame has pulled out of hosting the first presidential debate. the university president says needed help precautions "greatly diminish the educational value of hosting the debate on our campus." that debate will now be hosted by case western university and the cleveland clinic california's governor says overwhelmed hospitals in that state's central valley are getting nearly 200 federal

health care workers to help deal with the recent surge in covid-19 patients. the area is also getting federal aid to support more testing. and in mississippi, some students are back in school. they got a police and fire escort and they rode in cars decorated for the occasion the schools are offering a choice of in person or virtual learning a lot of schools are going to go that way, i think. that is our news update this hour back to you. sara >> sue, thanks we're just getting details on the next phase of stimulus being proposed by the gop. we'll discuss the details with the number two republican in the house, congressman steve scalise, that's next businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better.

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thank you for joining us again on the show. we're getting broad strokes now about what is in this bill good to see you as well. do you have any state and local government relief included >> well, there were a number of things that are in the bill that would help at the local level especially when you look at school aid that is right now the big debate or are schools going to reopen or not i've been in meetings with medical professionals that are talking about the importance of safely reopening schools as opposed to just allowing the online schooling so i know for hand sanitizer, masks for schools, there is already money available in the moneys we sent out in the c.a.r.e.s. act i think in mix mcconnell's ill there is over $100 billion additional money there but, you know, you talk about state, we can't be bailing out states that have problems prior to covid-19. our focus ought to be getting businesses back up and running safely, reopening schools,

making sure that there is liability reform, those types of things >> but don't you want to make sure that there aren't some mass layoffs of people that work for state and local governments like police officers and firefighters i mean those jobs are at risk as this is, you know, put a serious hole in the state finances and state funding. >> absolutely. in fact, if you go back to the cares act, we put $150 billion in place for states. and there is not a single state that spent all that money. clearly, we've been concerned about states but we're also concerned about safely reopening the economy and safely getting kids back into the classrooms there is the american academy of pediatrics put out really good guidelines and if schools need assistance, there is money in place for. that we need to make sure the money -- there is over $500 billion that we are appropriating to congress that hasn't been spent yet.

let's make sure that money is working and if you work smarter for families and states, let's make that money work smarter more flexible. >> congressman, we're seeing $200 per week in that unemployment benefit boost down from $600. is that right? would you be willing to increase it comments from senator schumer at the moment on the floor that he thinks there needs to be more. >> well, you know, we have seen perfect from a lot of the small business owners that are trying to get people back to work. you hear whether it's there or in nursing homes, they're saying the costs are up dramatically. with the 600 enhanced benefit, five out of six worksers are making more money and not going back to work that's not the kind of incentive you want to place. >> the numbers don't necessarily add up that may be true >> they do >> there may be examples of that there are still 15 million people that lost their jobs since march. therefore, through no fault of

their and there are not 15 million jobs on offer for them >> but you have had a lot of businesses that are saying they can't bring their workers back but they can't bring all of the workers back and it's real problem. so what is the amount? i don't think anybody would argue some might that you should pay people more money when they're not working than if they were going back to work if the job is there available for them. but it's a problem it's a real problem that you're seeing whether it's in hospitals, nursing homes, clearly in a lot of restaurants we heard this over and over again. it's no the just isolated incident >> just want to quickly go back to the state and local government issue i think this is going to be a real fight the democrats want to provide relief a lot of the governors said they really, really need it and this whole idea you said that you don't want to bail out states that haven't managed their finances well. i mean the airlines got money. and used a lot of the previous cash flow to buy back stock. you could argue they didn't manage the business prudently.

but you bailed out the airlines and business that's didn't do the best job managing for a crisis so why are state and local governments different? >> they got $150 billion that is more money than you have seen some of the industries get. we know we want a thriving airline industry i flew on a plane to come back here today to washington in a plane was less than half full. you know the problem is. there states are having their own issues so the we've been helping states $150 billion is still a lot of money. and like i said, there is not a single state that spent all of the money we sent them so i know you got some states yelling and screaming for more money when they haven't spent the money we already sent them the best way to resolve this is to work to safely reopen their economies. we know that there are spikes. but we also know no hospital system in any state is overrun we're working with those states that have issues we're giving more testing equipment. every day we're increasing our testing capacity you're looking at the therapies

that are being developed that president trump talked about today. we're very close to a vaccine. and you talk about a revolutionary change where we put a lot of money by the way into the relief packages into making sure agencies like the fda and the national institutes of health and cms can go and try to find a cure cms cms can go and find a cure for covid-19. that's revolutionary for any kind of vaccine that we're this close in terms of relatively speaking for how a virus works. so let's make sure that we're putting the focus in all of these places, not just one, but for, you know, someone to say they didn't get any relief when they got over 150 billion and they haven't spent all that money, let's stay focused on where the problems are and get kids safely back in school. >> congressman, thanks for joining s. >> great to be with you. thanks. google's selling employees

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mlb ask back but with some hiccups. baseball opted to allow teams to

play in the stayed jums without fans. players are tested every other day in both leagues while knowing eight players have tested positive so far in baseball, the miami marlins have to concede their game tonight after 14 players tested positive. and now tonight's yankees/phillies game is postponed because they played the marlins yesterday. so when it comes to reopening, what lessons and businesses and schools take from this let's bring in the former acting administrator for the centers of medicare and medicaid services in the obama administration. he's also host of the podcast in the bubble. andy, thanks so much forever joining us. i guess that particular setup suggests that the blame might have been on the fact that baseball's allowing the games to take place outside of bubble in the regular stadiums. but the english premier league and german bud less liga have restart and finished already with that being the format and it went successfully. what's been the problem here with baseball? >> the problem is if you've got a league like the mlb, it's not just what happens on the field,

you've got airlines, you've got airports, group activities, and, you know, it's a highly contagious disease. so it doesn't take much and people can't tell necessarily that they're spreading it. whereas, if you do what the nba did, which is a couple things that i think were striking. one is they developed really deep protocols they isolated people in this bubble. and then they rapidly test they test every day and they control the activities a lot more. people aren't going on airplanes and so forth. so it becomes very difficult for the mlb. i'm afraid it could get worse from here. >> so are you saying that all the leagues, i mean, nfl, for instance, which is also still working things out, should do the bubble to make this a viable season >> well, look, if you want to have a viable season or a viable business, there's a few things you want to do. you want to limit spread as much as possible. you want to test as frequently as possible, and you've got to tervet. my understanding of the mlb is

that they've only been testing players frequently. you've got a whole bunch of coaches and people in the clubhouse that aren't being tested. whereas, in the nba they've tested every single person and gotten the cases down to zero. so, this should be a lesson for all of us in our businesses that if you do open and you leave some gaps, those gaps could come back to bite you. >> and do you think it's fair that some of these sports stars, sports teams get special treatment when it comes to what they're allowed to do and how quickly an often they get tested because they do bring great utility to so many millions of people across the country? >> well, we have a testing challenge in the u.s. right now. and right now all of the tests need to be going to the people that need them the most. now, the mlb is doing -- i mean, the nba is doing something that i think is quite helpful in that they're testing out a brand-new saliva test that they've agreed to be in, effect, the guinea pigs for that would be a very low-cost test that could be used

through the general public. i think when a sports league steps forward like that to use themselves to help the general public, that's good for their image and i think it's fair. but if they were going to be using lots and lots of tests in baltimore that the baltimore orioles were, and the people in baltimore aren't getting enough tests think there that's not a good community look for a team. >> i'm trying to figure out what went wrong here and what other lessons learned there are. was the problem that the players themselves made the decision and the owners of how this was going to go and it should have been left up to infectious disease experts? >> well, the problem is that they're just behaving the way everybody else is behaving and the rest of us aren't getting tested. this is spreading rapidly and it's spreading from people that are asymptomatic or don't have symptoms at first and don't know they're spreading it. and the people in major league baseball are being probably

about as careful as the rest of us are. the difference is the rest of us may be getting it, spreading it, passing it and likely don't know it. we know according to the cdc, there's 8 to 10 times as many people who are getting coronavirus as are being tested for it. so, you know, if you really want to start a league, i think an nba approach seems like a much sounder approach. >> you think whole season's in jeopardy >> the whole season is clearly in jeopardy. the question is -- look, it's an experiment. and they're trying -- it's a difficult year and i don't think there should be a lot of blaming going around. you know, they're making an effort. i think everything other than those cardboard fans is, you know, is a value that hurts. but if they can't -- if it turns out they can't do it the way they're doing it, they'll adjust and maybe they'll adjust and start up again later, maybe they'll have to end the season.

>> andy, good to hear from you. thank you. >> thank you. as we look toward tomorrow, mike, and gear up for more earnings going into the crazy earnings peak on thursday with all the big hype, we're going to hear from a number of companies. ma'am lays is aft mama lays is after the bell. >> i'm watching the big tech stocks, just to reframe how we got here. down 4% to 5% as a group over a heated condition. they've cooled off a little bit. you've looked at amazon, apple, facebook coming into this week. they're going to be reporting leader this week, all down 7% and they bounced today. it implies they're coming into an equilibrium condition before they report as opposed to everybody looking for some great perfect number, which perhaps was the case with microsoft. >> and, mike, other factors with the macro is whether we get this extension in terms of the

stimulus and the fed meeting, the dollar of course incredibly soft. >> without a doubt. i do think the market is assuming there say deal assume there is a deal on stimulus but not rock bottom. deciding to look past that right now is the way the market feels. >> closing down at 1.7%. "fast money" starts right now. >> "fast money" starts right now. guy is back, tim see more. tonight on fast play ball or not in the already delayed baseball season maybe back on pause. plus, gold closing at a record high today, but in a flight for safety, could bitcoin be the better bet? and pod stocks lighting up. what's thoet got those trards hopes so high. but we start off with senator mitch mcconnell unveiling the details of the bill.