set numbers before the opening bell in washington, senate republicans unveiling the new coronavirus relief plan. details ahead. the fight against coronavirus. we'll hear from bill gates as "squawk box" begins right now. >> good morning. welcome to "squawk box" here andrew ross sorkin and joe kernen with melissa lee. becky is off again more from bill gates and what he has to say and talking about the u.s./china relations. and then in the show's final

half hour, joining us for questions. if you had to pick one, would you rather buy gold or bitcoin a lot going on this morning on squauchl >> that's actually a game we play on fast money would you rather that answer, the day after bitcoin crosses, particularly saling at the section. >> what i like best when they move in the opposite direction with pops and drops. >> was that not a fast money >> that is like classic fast money circa 2007 >> classics are the best

>> that is peered the way they are moving together. the way of the digital gold story. we've got all of this money printing the depth of the crisis getting down to 4,500? >> i think lower like 3,500. >> i wanted to ask you i don't know where you are i don't want to know what type of lease arrangements have you seen. when are they coming back to work at google >> summer 2021 >> what is it now? summer of 2020 >> it is a year from now

google, alphabet is the most out there. facebook is june 30, 2021. i wonder if all the big tech companies follow suit. microsoft was originally going to be back this fall i wonder if they'll get pushed out. >> so it is me and mack. he's all i have here they don't have a shot of him. are you in the shot? he looks good today. he's got his knight jersey on. you are not going to be here becky is not going to be here? until -- we don't know it is google >> i don't know.

i don't know what our policy should be is maybe it is a round of vaccine maybe we'll get the vaccine and everyone will feel better. >> i'm leading into the discussion with bill gates >> we talked about that. >> i haven't seen the interview but just looking at the sound, he loves the prospect for science solving a lot of our problems we are miles ahead of when we were trying to do this with polio. we know a lot about the mechanism of this stuff. maybe it will help maybe it won't >> this is what gets him

excited. this is the ultimate version of innovation and humanity. it affects both. >> look forward to that interview. we'll get part of that this hour >> it takes your mind all these places always an interesting ride with you. getting to the back drop of earnings one-third of the s&p 500 will report the flood of names today. 3 m, pfizer raytheon set to report before the bell visa, amgen and starbucks among the names to watch after the bell of course, don't forget the fed, the central bank holding a meeting this morning a policy announcement getting started. investors watching for includes about what they might do next. getting a jump here indicated

lower across the board the first time all three major averages were higher about three days it looks like we will get higher across the board nasdaq looking to be down about 35 at the open taking a check on treasury yields higher from where we were 24 hours ago. the 10-year yield. and the dollar hitting a two-year low >> as the dow is now down triple digits >> this morning, the latest package leader mitch mcconnell unveiled it. the relief plan includes enhanced federal unemployment insurance as was told us last week, 70% of a worker's previous wages which would replace the $600 which will stop paying out

this week. direct payments of $1,200 to $2,400 to individuals or couples and also shielding entities like businesses, schools and doctors for lawsuits $190 billion for paycheck protection loans $105 billion to help schools reopen in the fall and $16 billion to states testing capacity on paper now and ready to argue about it it matters to the markets. we snapped a win streak last

week doing days are specifically the last days of august. >> i think it is the last two weeks of august. >> i don't know in this day and age if that is because everybody is at home >> what if you decide to take a vacation, what would you decide what you are doing now >> he's working, joe >> he's home but he's working. >> you are on 50 acres somewhere. after you get off here, you are out fox hunting on a horse what are you doing when you quit >> i'm on this thing all day, joe, typing, typing. this is how i look all day

>> you might be outside looking around >> occasionally outside. occasionally a jog or playing with the kids. of course, playing with the kids has been the best part of it i'm so jealous of them now they are living their best life. i'm so close to it in a way i wasn't before which is great but i want to be them. >> i don't want to put this idea in your head what do you think you pay in state taxes? think about that number and think about if florida ever gets its act together is there any reason why we shouldn't be >> i know. >> we should talk about this maybe not on air >> we are not on air i thought this whole conversation -- we are on air. i hear music

>> joe, we are going to show the bill gates interview later we'll show you a piece of that interview where he talks about the flight from cities we should talk about that. maybe that's when we should do that you are right. >> is he like in the ml central? >> on the other side of this break, joe we'll show you that conversation and maybe that clip about the cities as well bill gates a tndhe fight against the coronavirus and the race to a vaccine. stay tuned you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading

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bill gates has donated $300 million towards the global effort to combat the virus i sat down with bill gates and asked him about the vaccine studies and which efforts he thinks show the most promise >> i'm enthused about all the vaccines the u.s. has funded there is the first wave, which is about five. then the second wave, which are cheaper, could be more effective. but they have to wait. various stages will start.

johnson&johnson is a good low-cost vaccine moderna and astrazeneca are the first to get out there we live ever day talking about these. how we put the world's resources behind these isn't driven by a normal market thing. this is cooperation to figure out within a country and across countries where this vaccine should go. >> on the therapeutic side, do you see any drugs out there you'll be able to get a prescription and go to cvs or walgreens or that it is not and in person or hospital event? >> the anti-viral that is approved, remdesivir, is right now once you have serious symptoms it is possible to move that to a form we would move early and make it easier to administer

there are two other anti-virals that would be oral by the end of the year, those other two anti-virals, that could be figured out also antibodies are another class. they are doing pretty strong work those trials are much faster you can see the benefit much faster i think there is a good chance we'll have substantial death rate reduction by the end of the year with the combination of those new tools. several of which when you start to have serious symptoms, you

would be treated before youhav to go to intensive care. >> guys, we got into the issue of the potential profits some of these may or may not make we'll show you that in the 8:00 but more on what we were talking about about leaving a city and more about how we might live in the future versus working from home it is something bill gates road about in 1985 in a book called "the road ahead. here is what he said about what it could mean for the economics of cities. >> overcrowding in cities does have some negatives in terms of the real estate costs and traffic problems you get into. the fact that only a few cities

have gotten a lot of these high-paying jobs that's a little problem for the cities and areas that get left out of that. i see this flexibility that has been accelerated where you can do telemedicine. we invest in distance learning to make it far better. i see that as basically positive, giving people options. i know some tech employees are living in different places and asking, hey, when do we need to go back so they can plan it was interesting that google went out to mid-2021 before they can resume normal office work. i think others will follow that. there will be less travel. there will be more flexibility about these jobs i think that is a really great thing.

>> do you think these businesses will thrive? not just beieconomically but to be able to grow and be creative you are living a distanced life yourself how much do you crave getting back in a room with them do you feel like creativity has been lost? >> i'm amazed at how productive we are as a new employee comes in, it's tough. the kind of conversations they would have after the meeting or running into people. the on line experience today isn't as good as the casual thing before and after the meeting or just hanging out. some of that is improved i think we'll do less long

distance travel. there is room for creativity on which benefits you get from what type of get together >> we are thinking about school this fall and what it means for kids i asked bill gates whether he would send his own children to school this fall he had an interesting answer >> i'm a big believer for young children, the benefits in almost every location, particularly if you can protect the teachers well, the benefits outweigh the costs. as you get up to like age 13 or higher, you have to look at the local to decide what they'll do with high schools. if they are not in, you have to put in massive efforts to continued learning on line our system has revamped education to get in and get out

and ramp those up and make sure minority and low-income students aren't suffering the most. it is a very tough set of tradeoffs everyone is going through. >> we got through a lot there. there is more coming up. he made some fascinating comments about elon musk and his view conspiracy theories out there. the role of social media we also got into big tech. we talked about the stock sales and the drug makers involved in these vaccines we'll show you all of that in the 7:00 a.m. or 8:00 a.m. manner >> if you asked us what would be the big trends

it would be urban living it is 180 degrees. if we are all distributed and doing everything, i'm scared the internet goes down >> there is a big concern that internet is a target of hackers. think about it >> the next virus we get is going to be a network virus which shuts down our entire -- that would be worse. well not worse if i wanted to shut us down in the future we are relying on. when my wi-fi goes down now in my house, they look at me like, you can't let this happen. things are going off there are sounds i have learned to turn it off and turn it back on.

that's the extent with everything >> think about it. if we had this pandemic without the internet >> it is amazing it is. >> there is something just like kids need the experience do companies need the collaboration of in-person contact? i still think they do. >> i think they probably do. >> i think they do. >> i think it is the issue he mentioned. i think you can maintain a business how many new people have you met over zoom or one of these services and either created a relationship very hard to do. >> right i haven't met anyone on zoom >> look forward to the rest of that interview, andrew coming up, a new survey on how parents and students feel

about returning to college and whether it is still worth the cost wetures now are pointed to a lor open you are watching "squawk box" on cnbc

pandemic has changed when it means to attend college. what parents and students feel about it and is it worth the cost joining us now i wasn't on the phone. you could have called me i have some thoughts on this here is the headlines. no plans for a gap year. many students are concerned but few are taking the year completely off those are the latest findings from the how america pays for college survey 70 perts of families say they'll attend the same school as last year 13% are uncertain about what

they'll do 5% will enroll in a different school but only 2% plan to take time off, take a gap year and not attend at all. a survey found that two third of parents think college is worth it even if classes are only online more than half worry about how they are going to pay for it >> completing the fafsa is really important >> the free application for federal student aid. it is critical to unlocking about $150 billion in federal aid, loans, grants, work study programs last year, more than a quarter of families didn't even fill out the application, joe >> people's financial situations right now, currently, could be a

lot different. the key is getting one of these fafsa loans. >> here is the issue that form is based on your tax return from two years prior. so there is no one's financial situation anywhere near two years ago. this is when you need to call financial aid office directly to negotiate for a different package. >> i've thought about it, sharon, a lot. the college experience a lot of people say it is the greatest time of your life greatest six years, including graduate school. it is not the same, is it worth it you do need that diploma and

degree and what happens if you are not in college a lot of universities and students are asking about it that way when you do a gap year and take time off, you might travel or do an internship. that probably won't happen many are saying we'll just stick with the school we know and take some online classes there. >> given a challenging year for colleges research found the top private schools are stanford, harvard and university of chicago. top public schools are university of washington, university of new york

for the full list head to cnbc.com/make it coming up, the corporate party begins we'll hear from 3 m and pfizer in minutes analysis are straight ahead. woo el be right back as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected. yeah, everything is runningis smoothly with the now platform.

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>> 3m results. reaction is down because adjusted earnings of $1.78 is just shy of expectations

below the $7.322 billion expected i wish people would think about how they write it. the headline, organic local currency sales growth decline 13.1%. it is not growth it shrunk by 13.1% talking about how difficult it has been to operate during the pandemic at the same time expressing giving kudos to their employees and others for managing costs better than they normally would but dealing with the same time of environment the guidance remains withdrawn it will continue to provide

monthly sales updates. that's not helping the dow at this point down a little bit >> they do note july month to date sales were up that is an improvement versus what they saw in the prior months seeing 3m shares down 1.4% the fed are expected to kick off a meeting where they are expected to keep rates the same. talking to our guests. kathy and jeffery, great to speak with you kathy, what are you expecting. a lot of talks that the fed will talk or walk towards a more

telegraphed targeting message such as yield curve controls what do you think about that >> i think they'll wait until the fall to do anything meaningful they may take a half step towards the inflation targeting. they will do that by adjusting indicating they are certainly in no way in a hurry. the inflation is at 2% or even higher the other thing they could indicate the easing not just at sustained market stability and also to provide additional stimulus to the economy. >> jeffery, what are you

expecting? the timing is interesting given that the stimulus package in congress is continuing to be hammered out as we speak, hopefully. they've been very vocal in saying they can't do it alone. they might be on hold but do you think they'll do more jaw boning here that's a good point. the focus is not really on the fed but much more on the competing proposal we'll hear from the fed what we've heard from continued policy support it is not a major

attorney here. maybe something in terms of developing on forward guidance the major policy changes are still to come. they'll be deliberated in this meeting. we are not going to know that until we get the minutes i think the focus of the market will be past the fed meeting and focus on the fiscal policy issues >> we've seen the 10-year yield hit its lowest weekly close ever on friday. i'm wondering where you think the 10-year will go and what that yield curve could look like >> that issuance will continue to go lower and lower here what you are seeing is the

secular trend where interest rates will stay low. concerns the economy is stalling or reversing gears the idea as jeffery said the fed is not going to do anything dramatic now there is speculation that will be something later that also helps to put downward pressure we are not looking for any large increase that this would be very gradual and slow going forward >> great to speak with you thank you. we appreciate it coming up. when we return, a lot more we have quarterly results from pfizer and goldman sachs ceo by day, dj by night david solomon in the hamptons

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welcome back a little bounce here the dow still looking to lose. looking to be down by eight. nasdaq off by 19 looking at some of the leaders we did just get results from 3m with a miss on the bottom line in terms of the gainers, we have pfizer with shares up 2% we'll take a look at the lagardes that loss would look like a 14-point weight on the dow more at this point clearly the biggest lagarde on the dow so far

>> to a story grabbing the attention of wall street this morning. my inbox was lighting up overnight. governor cuomo furious about a concert in southampton on saturday saying he's appalled by the social distancing violations this is what he treated. the department of health will conduct an investigation we have no tolerance of the illegal endangerment of public health the concert by the chain smoker and featured goldman sachs dave solomon. it was a charity concert planned originally as a drive-in the idea that you would sit in or around your car you can see what happened. that's not what happened people clearly not just got out of their car but got together. a lot of eyebrows being raised

on wall street and in corporate america. i got e-mails from ceos saying this guy is supposed to be a risk manager i'm sure he was the talent to some degree. i'm not sure he was in charge of exactly how this concert was supposed to play out unclear whether he was calling for social distancing or not involved in this now and the governor calling for investigation. we should also note we have reached out to goldman sachs for comment. they have not commented to us or others who have reported on this >> just part of the weirdness of him being a skilled disc jockey. >> a dj. >> it is weird >> you wouldn't think, yeah, a big concert and the dj there is the ceo of goldman sach. that's where the whole disconnect comes in?

in the past, we thought it was an interesting thing in this case, it is coming around and not being that positive >> do you think it is a negative for goldman sach do you think it is actually a negative >> you know, these days. i feel social distance, i feel it now don't you. fur within two feet of a person. is it always going to be like that from now on if i have a mask on, i feel it it is very strange i don't think i would have been there. would you? >> i don't know. your question, to the degree people are upset about it. there is a shout for that kind of thing not just from rivals

but from people. >> there is a little bit of a gossip, he didn't organize this. he can't take full responsibility at the same time, he's engaged in it. it is complicated. >> look at that pop in pfizer. >> let's get to meg with the headlines. >> good morning. pfizer reporting a beat for the second quarter on earnings and revenue. adjusted earnings per share coming in at 78 cents versus estimate of 66 cents revenue was $11.8 billion in the quarter. more than the $11.5 billion they were looking for the company raising revenue to $100 million for the year. the company saying in the second quarter they did see an impact from covid-19 of about $500

million negatively about 4% of total revenues they said primarily because of unfavorable disruption to wellness visits. also lower demand for some products in china. they said this was partally offset by the sterl demand such as ventilators they said they had more demand for the prevnar for adults we should also note of course, last night, pfizer announced it had started the late stage clinical trial of the covid-19 vaccine along with its german 35 german partner in the united states along with moderna, that race is on back to you. >> so the same amount of time for the two different vaccines,

the clinical trials or it is up in the air how quickly does it look like something we'd have an answer on >> pfizer is saying it is still on track to seek approval by october. it depends on how fast they enroll these studies >> okay. you probably saw this kodak deal it is fascinating. >> so interesting. >> they are getting $765 million loan a hint it has to do with a medical supply chain and bringing it back here. making film, making making pharmaceuticals.

eastman kodak winning a $765 million loan under the defense production act it will support the launch of kodak pharmaceuticals. adam, in looking at this, the beauty of the whole idea just

sort of is apparent but i didn't understand it initially. kodak not put out of business but who's using film with these smart phones now so they have this huge manufacturing footprint, 1200 acres, 1600, wastewater treatment facility, ready to go with specialty chemicals which aren't -- for film which aren't that different than the key starting materials, ksns, that we get from china for pharmaceuticals. do it here that's what this is about. >> you got it. that's exactly what it's about we did until two months ago i was in air force one with the president. he signed an executive order to allow my agency, dfc, to invest in the united states to invest in the united states to reshore critical industries, things that we need. if there's ever going to be another pandemic so that we're not caught in the same place one of those areas that was clear to us is the

pharmaceutical supply chain. if you look at drugs, 90% of the drugs we take today are generics and they are almost all made over seas, the dominant manufacturer of ingredients for generics is china and number two is india if we're going to reshore, bring things back, we need to change that so kodak was referred to us. we found somebody that wanted to place a big advance order for pharmaceuticals. kodak had been considering creating a division focused on pharmaceuticals, kodak pharmaceuticals. like you said in your beginning, they have all of these factories that are there producing chemicals. what are you doing when you produce film you're producing chemicals they have a massive campus not used they're going to reconvert it and by the time we're done, they'll make 25% of the country's ingredients for generic pharmaceuticals. we will not be dependent on anybody else for those key

generic pharmaceuticals. >> if you accept all of this at face value, adam, it's too good to be true so these aren't being used -- utilized fully, i guess, these manufacturing facilities so you will need people to work there and you'll have to actually -- this is going to create jobs in this country as well >> absolutely. rochester, new york. upstate new york, blue collar jobs one of the advantages when you think of manufacturing capability, where does it sit? it sits in blue collar america where jobs are needed. so our ability here right now, the first one is in rochester, creating 360 jobs in rochester, 1200 jobs to build all of the facilities and build them out. you'll see a revitalization in a place like rochester i think that will move on to other cities as well. >> not like where we're getting them now we should be real proud of the kind of places they're being

made either. so you've got key starting materials which is where it begins then you have to do active pharmaceutical ingredients, then you finally get finished dosage form tablets >> yes. >> what do we need here? all three? >> we're focusing on the first two. the ksn, active pharmaceutical ingredients. they have an advance purchase order, that's how we're financing it we are financing it based on equipment, based on advance purchase orders and then it will move onto the third stage into capsule forms. >> this isn't the first time it's been done, fuji, bayer.

>> right. >> you have the facilities we don't make buggy whips anymore. they can be retrofitted? >> that's right. >> you get jobs and what you need to not be so dependent on countries that don't like us so much. >> that's right. it's a win all the way around. we need to bring jobs back to the united states and, two, in the midst of a pandemic, how can we ensure that this never happens again? this was a major focus i spoke to the secretary of health and human services, alex, what is the industry we should look at first? he said, adam, you have to look at generic pharmaceuticals that's 90% of the medications americans take every day if that turns off for whatever reason, we have a problem. this is going to ensure that it can't turn off because we own it. >> amazing what's happening to kodak. i don't know, last time i looked at kodak stock

it's been a while. i didn't recognize the symbol. dow component. it's amazing unfortunately what's happened but this is a step back, i think, adam appreciate it. >> thanks for having me on. >> thanks. andrew a lot more on "squawk" ahead. quarterly results from dow component mcdonald's we'll bring you the numbers and instant market reaction. we'll do it straight ahead to return to the workplace, safely, companies will need the right tools. that's why salesforce created work.com it's an all-new suite of apps, expertise, and services. to manage this crisis today, and thrive tomorrow. everything companies need to return to the workplace. let's reopen. safely. 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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a flood of earnings this morning including mcdonald's just crossing the tape a run on what to watch in the market's take away is straight ahead. squawking with billionaire bill gates his thoughts on the battle of covid-19 and the role big tech should play. plus, steve bannon on the growing tensions between the united states and china. as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box.

i'm andrew ross sorkin with joe kernen and melissa lee becky is off today the dow is off 65 points right now. nasdaq looking to open down close to 10 points s&p 500 off four points but we've got an enks parade, joe. >> we do we do. >> i think it's hard for us to live up to that music. the buildup is so great and they hit us it's hard. we have it today rate rogers with mcdonald's numbers. >> mcdonald's out with a mixed second quarter eps coming in at 66 cents adjusted, that is an 8 cent miss on revenues of $3.76 million same store sales declined 24% overall. down 41% in international operating markets and down 8.7% which was better than expected monthly comp sales

it's down 5% in may, 2.3% in june average same store sales along with guest counts remain negative, particularly at breakfast. in the u.s. 99% of restaurants are open some with limited operations the company just paused its reopenings for another 30 days as covid cases continue to climb around the country some 2,000 dining rooms are open in the u.s they joined others in mandating face coverings in a statement chris kempczinski said our strong drive through presence and the investments we've made in delivery have served us well back over to you >> meantime, thank you for that, earnings just out from dow component raytheon earning an

adjusted 40 cents per share. well above the 12 cent consensus estimate revenue also beating wall street forecasts. look at that stock right now to see whether it's moving. also want to talk to dom dom's coming back. melissa, are you there sorry. >> yeah, i'm here. i'm here no, no problem we're watching raytheon shares up by 2% we'll talk to dom later on for more of today's earnings, let's bring in greg branch a partner at 1847 financial and mike santoli, cnbc senior market commentator. mike, we have a smattering of earnings so far. it's been quite a mixed bag. no surprise. many companies are still withholding guidance for the rest of the year really this is all sort of no surprise here for the markets. nothing new. >> not much new. the market has essentially written off this quarter in

terms of being any progress towards the longer term earnings targets. for an example, mcdonald's missing slightly 66 cents was it going to be 71 cents? in february it was $2.17 the market has said, mcdonald's, it's retaining employee shares however, mcdonald's is an instrument where you can get 2 1/2 percent dividend the big growth stocks are beneficiaries of this environment. i think it's pretty much a steady state during this earnings season where the 12-month forward estimates in aggregate are starting to curl higher that's getting a little bit of reassurance that this has hunkered down and things are turning for the better down the road. >> with all of that said, greg, how do you go through earnings season what sorts of questions do you

want answered if you know the company is going to stay away from giving guidance for the rest of the year and things, as mike had mentioned, are fairly status quo at this point in the recovery off the bottoms >> yeah, let's talk about two of the names you just mentioned for mcdonald's, what we want to see is rea firm the financial strength and assure investors that the dividend is safe throughout the back of the year. we expected weakness in europe where closures have been more significant, where traffic is down, where reopenings have been less widespread than they've been here. that's no surprise in addition, the participants in the sector are given a mid quarter update we generally have a directional feel for where those same store sales are going to be. hearing them said they are going to invest more in digital and delivery is a plus generally those are the names that have been rewarded in this

sector, particularly pizza names. that provided support as people have shifted to stay at home. >> you like mcdonald's it sounds like, greg. >> i think there are others in the group that are more attractive it's hard to argue with their financial strength, resiliency or a second wave. >> right which other names do you like better >> i think the pizza names are still the place to really look here again, they're among the strongest in terms of those two areas where investors have really rewarded, that's in the delivery and in the digital sales. chipotle is a strong name in those two areas as well. we've seen in this market that investors are flocking to an area of strength those in this sector are by far two of the main things investors have concentrated on. >> they are the ones also poised

to best deal with this pandemic environment for longer, mike santoli. that could be the theme we see emerge in the earnings season in terms of trends and the companies willing to go out on a limb and give some guidance or comment on positive trends could be the ones benefitting from the stay at home sort of mentality. >> i think it is a little bit of a tension between people realizing the trends are self-reinforcing the obvious names like amazon are benefitting. once you're in the system, they're going to keep doing that to you perhaps better reopening trends. if people gain kwf dent that the peak in case counts is going to be sustainable, you wonder if we'll see another rotation like the one in june that peaked.

that's the back and forth even as the overall index has stayed reasonably well supported at the top of the range. >> we're watching sherwin-williams results crossing the tape beating both the top and bottom lines handily. this is one of the names that has been a monster stock, greg, benefitting from this sort of trend of restoring your home you notice that you need a coat of paint in your study, you buy some paint and you paint it. we're seeing that time and time again. >> right >> do you like this sort of trade? >> well, i'm going to harken back to the stay-at-home more generally and if you don't mind shift a little bit back to tech. not all tech is create the equal. there are particular subsectors that have benefitted when you look at the internet retailers the relative

outperformance has been about 58%. this is probably well deserved the internet retail space is expecting earnings growth of around 300% next year but as we start to look at calendar year 2021, it's going to be a really tricky situation consensus is expecting many tech names outside of the internet retailers to be about 15% but the broader market is expected to be around 35% as we see some of these depressed sectors start their recovery what you'll have is very expensive names. in some cases 30% relative outperformance in valuation and margin expansion it's very expensive names trading at a super premium but without the relative earnings outgrowth. it's key to look at tech and those positioned for the stay at

home sector, i expect them to benefit in an out sourced way. >> thursday should be interesting, alphabet, amazon and apple all in one evening greg, nice to see you. thank you. mike santoli >> as always, good to see you. >> joe. >> thank you, melissa. sorkin, go out and get a can of paint and paint a room on the list of activities to do during quarantine, where is that for you? i think we're more alike than people think is that sort of down -- did you think of that, maybe i'll go get a can of paint and paint one of the rooms? >> i haven't done painting. >> it's like get a ladder and clean the gutters. melissa, i don't know who your friends are. >> we've been doing a lot of work around the house. >> you have? >> we built a garden. >> built a garden. >> i built a whole -- >> i >> whole home for cooper the bunny. >> did you have it built or did you actually build it? >> you're pointing.

>> no, i built it, i built it with my own bare hands >> your bare hands pointed over there. >> no, no, no. it took all day. my hands -- to be honest with you, these baby hands were swollen. >> baby soft hands. >> baby hands. >> you might have a callous perhaps? a blister? >> i had callouss, i had blisters. >> from a hammer. >> i was a mess. >> all right i'm sorry. >> but cooper now lives in his own little mansion. >> i'm sure cooper appreciates it. >> cooper, keep glenn close away from "fatal attraction." do i dare go to dom again? do we chance it, sorkin? we can't depend on this guy. >> go for it. >> all right i'm going to try i don't know what you were doing, dom a number of other earnings out this morning dom chu -- there he is

you made it. >> i'm here. >> dom chu joins it for more. >> duty calls. >> using my soft and supple hands to build some rabbit coops and whatever else is going on these days it's been such a long time i had no idea you guys were building things in your backyard. i will admit that i can only do certain things around the house and then i will direct other people to do things like clean gutters, fix my roof, do some painting, all of which is happening around my house and has been for the past few months anyway, like you said, joe, i don't want to get too off base let's talk about earnings components shares of 3 dlgs m lower to the tune of 3 1/4 percent. we'll call it a premarket volume yes, everything from personal protective equipment for medical professionals to industrial filters and scotch tape reporting profits that fell below consensus estimates.

3m said it couldn't give a forecast for its businesses and economic effects those shares ones to watch big dow component. shares of pfizer down 3 to 4% at last check now up 2%, 2.5%. roughly 125 shares of volume dow component as well, reporting better than expected results raced that they said they would begin to vaj the foeblgttiveness of covid-19 candidate. shares of harley-davidson, down 2% the motorcycle maker reporting the surprise loss as well as revenues that fell shy of analyst estimates. it is feeling the economic effects of covid-19 on its businesses it announced plans to refine the product lineup andrew, joe, melissa, all of those ones to focus on and i, too, am doing stuff around the

house but mostly i have other people do it for me. back over to me. >> i like your style, dom. i like your style. >> i'm going to try to do more of the hands-on stuff with you >> when we come back -- by the way, my kids desperately want -- think, joe, you need to see the bunny. they want the audience to see the bunny. we might have to have a cooper appearance. >> do that do that. is it one with the weird ears? >> desperate for an appearance by the bunny or really they want to come on we'll see. when we come back though -- >> the ears. the one with the weird ears? >> the bunny >> yeah. you know -- >> the bunny's got ears -- >> he's listening. >> does it matter? >> it matters to me. i'm trying to visualize what cooper looks like. >> we'll see cooper in real life. >> cooper may make a cameo later. we'll call that a tease. we have billionaire -- what a

segue, from billionaire philanthropist bill gates. he'll be joining us after the break. we'll show you an interview where we talk about his role in the fight against covid-19 also, we talked about the role of big tech, his comments. you've got to hear what he has to say about all of it later, steve bannon will join us with more coronavirus stimulus and so much move we're looking at t dheow down 87 points right now squawk returns right after this.

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get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile. his advice to the president. >> well, the simplest thing, which has to do with such insanity, is you should not reimburse somebody for getting a test that it takes more than 48 hours to get the result back that test is a complete waste. all these numbers about how much

we test, the majority is just complete waste you need to get it back as soon as possible so that somebody can change their behavior so they're not infecting other people our case levels are too high for contact tracing to work. those numbers come down, they will come down at some point, then that will kick in, but right now this thing where you wait more than three days, sometimes seven days to get a test, nobody should pay $1 for that that's insane. you need to prioritize you need to make sure that low income communities that are most at risk, that they're getting those results back within 24 hours. that's near-term thing and thin enabling the therapeutics and vaccines appropriately test to get out, that would be the next thing get the whole world the benefits of those things so we can go back to normal >> and then, guys, we got into

the conspiracy theories because according to a pew research poll, 1 in 4 think covid-19 was definitely or probably planned by, quote, powerful people i asked bill gates about this and whether people will take a vaccine when it does become available. >> we can go a lot further by inventing more vaccines. so the idea that, you know, our foundation is connected up in that, we're trying to help, those are the values that melinda and i have to flip it around and say somehow, you know, the creation of the virus or profiting from vaccine, that's unfortunate, but the -- it really starts to herd if it means people aren't willing to take the vaccine and once it goes through that safety

process, that the fda is the best in the world at a professional level of being able to review that so i am worried. it's not surprising that people are looking for simple explanations in a very uncertain time, but hopefully they'll look to the facts, understand the values of the people that they're thinking about and understand that, you know, we're in this together and, you know, we need to protect each other with masks and eventually probably with herd immunity through a vaccine. >> of course then there's the highly anticipated hearing that's taking place on capitol hill on wednesday amongst the big tech ceos at the helm of the nation's largest companies they will be addressing the house antitrust committee. what do you make of the role of the platforms in spreading conspiracies >> definitely when you let people communicate you have to deal with the fact that certain

incorrect things that are very titillating can spread the facts that it does cause autism, that travels very slowly by comparison. and social media can make that even worse the degree to which the media companies can see what's being said on their platform and take things that are absolutely wrong and get rid of those things or slow them down, that's very tough because as you move over into political speech or a valid discussion about safety issues, how do you draw that line? do you have that visibility? these are complex issues and it has been a spreader of

lots of negative things and, you know, how do you strike a balance there? the pandemic -- >> do you think it's -- >> say that again. >> do you think you would take a harder line? the reason i ask is mark zuckerberg has been very firm about covid news he's actually all over covid news, tries to keep it -- tries, i think, to deliver the right news and tries to filter out news that isn't, but when it comes to news news he's more if i said liberal or progressive with it people would think that was a political statement but it's not. >> well, some of the messages on the platform they don't even see because of the encryption in whatsapp so they -- in order to not have any responsibility, they've made that opaque so whatever the issue is, anti-vaccine, child pornography,

they have made sure they can't intervene on those things. different countries are debating is that appropriate. is this idea that you can't when you have criminal activities or different things, the government is blind to what's going on there. i don't know that that will come up this week i think this week is more of an anti-trust related thing certainly reminds me of when i went in front of the congress i wished them well. >> let me briefly ask you about that though because we've talked about how important competition has been in trying to find a vaccine in this time is there enough competition in the tech world today, do you think? >> i think over time the tech world is naturally very, very competitive. i'm not saying the authorities

have to be totally lassez-faire, but i do think that people under estimate that natural competitive forces do come into this space and we saw as mobile phones came in, that was hyper competitive. and, you know, the prices keep coming down, products improve. there are some things like branded merchandise or controlled marketplaces that it will be interesting to see how that could trigger it. i think of tech even without massive regulation, that there will be a lot of innovation. >> we have a lot more from that interview coming up in the 8:00 hour including some interesting words about elon musk's view on the coronavirus as well as some work that bill gates is doing behind the scenes in washington, d.c., as well as the conversations we have on this

show oftentimes about insider trade -- i shouldn't say insider trading but insider selling, if you will, among some of the managements of the fa pharmaceuticals. he's got views on all of it. we'll share it with you in a little bit. >> meanwhile, we'll go from bates to bannon. coming up, former white house chief strategist steve bannon. he'll discuss the pandemic, the economy and of course the presidential election. plus, if the cars on the road look older, that's because they are. the average age of vehicles hitting an all-time high and dealers going to cash in eventually you figure. tas rahthead i'm pro athlete stylist calyann barnett and i'm here with nicole and miles and we're out to find the top looks for day one back to school at dick's sporting goods and so we want to find something that's going to grab everyone's attention

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welcome back to "squawk box. we talked about the somewhat troubling party out in south hampton. it turns out three people, meanwhile, were ticketed for violating state covid-19 limits in new jersey after hosting a party that attracted more than 700 people to the jersey shore to an airbnb rental in the whispering hills section of jackson township it was sunday night. party was held and included free food, alcohol and a twerking contest it says here it took about five hours for state troopers and police from jackson and six other townships to break up the massive gathering. the person who rented the airbnb

home and party organizers were arrested in violation of the covid-19 rules these are not helpful. not helpful. i mean, twerking contest sounds awesome but it just -- but -- melissa? >> apparently it was a celebration of liberian independence day i'm not sure if twerking is traditionally done to celebrate the independence of liberia, but i'm sure that had a role. >> it was called a mansion party. 700 people there aren't that many mansions. that had to still out. i'm glad i wasn't there luckily. >> all right >> the only good news, i was going to say, now that you have -- you're seeing lots of examples where authorities though are trying to do things about this and i wonder whether

it ends up acting as a deterrent or not there was that example of the gym in new jersey the other day as well in terms of closing down gyms did you see that >> i feel bad for gyms. >> maybe it brings more awareness. >> feel bad. >> still to come on "squawk box," we will discuss u.s.-china -- we will. we will. promise. we will talk u.s.-china relations with former white house strategist steve bannon. a big week in tech testimony on the hill from names like mark zuckerberg and jeff bezos. we'll break down what it could mean for shareholders. you're watching squawk netivepea ga on across the board. we'll be right back.

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china and the u.s. tensions have heated up with consulates on both sides shuttering doors and shrinking the footprint. let's discuss with steve bannon. in a recent speech by the secretary of state, mike pompeo, seems like he's moved or maybe the administration has moved closer to your viewpoint, steve, on what relationships with china should look like given some of what's happened in recent history with china is that fair to say? >> i think it's even deeper than that i think if you look at the series of four speeches starting with national security advisor o'brien in phoenix back in -- earlier, i think earlier in july, you look at him, fbi director ray, the seminole

speech by bill barr culminated at the nixon library on the 51st anniversary of kissinger's secret trip to china, i think shows the united states has a coherent and comprehensive strategy with taking on not just containing but taking on the chinese communist party. it's breathtaking. it's bringing in the united kingdom, india, japan. the ccp is running a technological warfare, economic warfare and hopefully to avoid kinetic warfare in the future. i think from the south china sea to continue btibet, london, was, people are standing up to the chinese communist party. it will be the greatest legacy

of president trump's eight years in the white house. >> just for the markets, because that is what we cover, when we were in negotiations on phase one for china and trying to figure out how to reset our trading relationships, the markets would move up or down based on prospects for arriving at a deal, what the deal included, prospects for a phase 2. none of this sounds good for a phase 2. i don't even know how it sounds for whether they follow through on phase one why is this a positive why aren't the markets more concerned? obviously covid took precedence in the meantime, but it used to be really important for the global economy how we dealt with china as a trading partner. >> this is important for the global economy you'll see better things once the chinese communist party is out of the way the cheerleaders on wall street, bill bar's speech, he said they were collaborators and guilty of

apiecement the administration has had a very tough policy saying the chinese communist party -- this is not covid-19, this is the ccp virus. the ccp lied and americans died. the ccp lied and the chinese people died. the ccp lied and we must focus on this. how can we talk about a trade deal what they've done in hong kong when they've taken away the freedoms of the hong kong people at the same time the chain of custody on the decisions, whether it came from a bioweapons program or whether it came from a gain of function experiment in a wuhan lab gone awry, we know from chain of title and chain of custody back in december to lie to everybody, including at the chain deal to come over here, shake the president of the united states hand, have a huge gathering of what they knew back this december and we knew secretary

xi talked to senior kadri the first week of january. they need to be held accountable. i think what you saw in the four speeches and what we're waiting for is the same level of speech from the secretary of treasury and ultimately i know the president of the united states is going to cap it with a major address, i assume, to take this on i'm going to tell you. "new york times" had a brilliant article the other day. what's been put in place by this whole of government approach now is not going to be -- it will be unwinded by beijing and biden. tony blinken, jake sullivan and his crowd have been noticeably quiet. they're out there with their pompoms on they lied about the virus, it exacerbated and they need to be held accountable break the hong kong dollar cut them off from all u.s. dollars. use hong kong as the anvil and the u.s. dollar as the hammer.

it's time to take the fight directly financially to the chinese communist party. >> where does your relationship stand with the chinese businessman, he's an exile the fbi apparently examining some of this gentleman, the money being used to fund some media relationships? >> yes he's head of the whistle-blower movement he's one of the founders and drivers of the new federal movement of china. chinese expatriots, you saw in houston they were there heckling the chinese communist party people the story in the wall street journal is complete total nonsense by the way, he's been the biggest whistle-blower, whether it's h&a, all of these scandals that he continues to lay out the

truth bill bar, they're collaborators. the people that are appeasing them are legion in this country. they have to understand not only are they going to be held accountable for the virus, they will be accountable for the what they're doing for the yantze river with the contamination but all of the collaboratorcollabor, appeasers, every dollar stolen from the chinese people that came to the united states in real estate stocks and bonds, that will all be reviewed in the future this is why it's time to back off your support for the chinese communist party. they're in the gun sites and secretary xi is in the gun sites. he should be sanctioned personally we should start to seize all of their assets.

>> andrew has a question. >> i'm not going to try to dissuade you my question relates to the election, which is to say there's some strategists, if you will, that suggest it would be beneficial for the president to escalate the tensions with china ahead of november. do you think that's true >> my position from day one, andrew, is that the path of victory goes right through beijing. it's not racing the tensions, not doing it that's the other side of the coin of how we have to conduct ourselves with the pandemic. we started the show back in jap because of my knowledge of china because i knew it was going on in hubei province and wuhan. it's eviscerated the american society and culture. we need to point the finger and

hold accountable those who did this if you look at economic nationalism, populism, it all ties in. only in breaking the business model of the party in daf vos, to free the slave line of then essentially, the surfs, working class. mighting class and to break that is the end of populism i have said to the beginning the path to victory lies through beijing. joe biden is absolutely the weakest candidate. this is where he won't be able to gather the bernie economic nationalists the president, he's the senator, he's the concierge of wilmington, delaware.

that's a post office box and a friendly federal court for global corporations. that's who joe biden represents. that's why he was put on the obama ticket because obama was a fire breathing anti-war populist joe biden was put in charge of the pivot to asia and he completely blew that what did it deal with, andrew? cyber intrusions and the militarization of the south china sea. his record of his relationship, buddy buddy with second general chi. it ties back to the phoney populism the president should get very focused on china, very focused on the ccp you can drive to a major victory in november if you just get focused. >> steve bannon, we appreciate your being with us this morning and we will see you as we do every so often and get updated on all of these things thank you. we appreciate it. >> thanks, guys.

>> andrew. a lot more on "squawk" ahead. if you are seeing older cars on the road, well, you're not alone. the average age of an automobile on the road is at an all-time high phil lebeau joins us with a new report and what it means for the economy. take a look at futures looking to open down 12 points, naaqffsd o 40 points dow down 127 points. back in just a moment.

welcome back to squawk corning shares up by 1 1/4

shares tech effect on jetblue, revenues also missing the mark. the airline warning it expects demand to be volatile so it will remain conservative in adding flights back to neutral. sherwin-williams better than expected on earnings that stock is up by more than 3% centene shares coming under pressure earnings fell short. the company is the biggest provider of managed medicaid and aca plans. benefitted from fewer people visiting the doctor for care amid the pandemic. that is down 3.4%. shares of polaris with the company benefitting for a surge in demand for outdoor recreation harley-davidson, sales dropped

27%. if the cars on the road look older, that's because they are the average age of vehicles in the u.s. is at an all-time high and auto dealers are cashing in. phil lebeau has more. >> reporter: the auto dealers don't make the money on the new ones they sell, they make it on the service. here's the latest data from ihs market they have been tracking all of the vehicle registrations at state dmvs, 280 million vehicles in the u.s average age of the vehicle is now at a record high ticking up 1/10 of a percent to 11.9 years. that is a record high. get this, one out of every four vehicles on the road in the u.st at least 16 years old. why do we have this aging fleet of vehicles out there? three things happening one, better reliability. starting around 2004, 2005, you started to see better quality going into these vehicles. they're lasting longer

that's why people are owning their cars longer. unemployment is higher, people are uncertain about their job status and covid-19 has an impact, too. it's limited the number of miles people can drive their vehicles so they can hang on to them longer this is good news for two auto parts retailers. we're talking about autozone and o'reilly automotive. when you look at them, those stocks are taking 0off. used car dealer sales, no question why they're doing well. that market continues to be very strong people are going in with an eight-year-old vehicle and getting a decent amount for it and turning around and buying another used ehicle. guys, not a surprise we see this, especially when the economy slows down expect this age to go up over the next couple of years >> hey, phil just want to understand pricing. feels like there's no discount on used vehicles in part because

there's no discounts on new vehicles because there's so few of them? how long does that last? >> at least for a while. the used market, the average used vehicle price costs $21,000 right now. that's a record high it's 37,000 and change for a new vehicle. that's also a record high. there's no slowdown in demand, andrew that's going to continue for some time. the used market has been red hot. they're going to sell 40 or 41 million used vehicles in this country this year. i expect that to continue for several years. >> all right, phil thanks coming up, big tech still in the spotlight this week. not only on the earnings front but also in front of congress. we'll discuss at the break billionaire philanthropist bill gates on the promises of a covid vaccine and thstks oe ocn elon musk stay with "squawk box. coming right back.

welcome back to "squawk box. ceos of amazon, apple, alphabet, facebook will be talking to congress joining us to break down what to expect, joanne lipman, distinguished fellow for advanced study at princeton and cnbc contributor alex cantroid, a cnbc contributor. good morning to both of you.

in terms of who's going to be in the hot seat, there are four of them who do you think will get the most attention and who is the most at risk joanne >> clearly jeff bezos will get the most attention because he's not testified before congress before this. because we have all four of them though sitting before congress, it's unlikely we're going to get a lot of any kind of break through from any one of them they all have talking points we've heard that before. the onus will be on the lawmakers to try to push them to try to get new information out there. >> alex, this is ostensibly an antitrust hearing but when you think about facebook and some of the others, it's not clear it's all about antitrust. to some it may be about free speech and the like and censorship who do you think is the most at

risk right now >> i agree with joanne jeff bezos is going to get the first attention. amazon has 798,000 employees it does have the opportunity to do real harm to americans due to the market power it has. there are so many suppliers that depend on it when you ask the question about real risk, that's something i think we should seize on to. i don't see any risk for the tech giants in this hearing. they're setting their own policies they are nonfunctional they can't walk by each other without calling each other names. we have covid, election coming up, the outcome that i see happening here is that the tech giants will continue to dominate the economy and operate at will and they won't see much deterrent from congress at all >> joanne, you know, people say

that right now there's bipartisan interest in this issue, republicans and democrats seem to have a problem with big tech yet alex on the other side of this -- i don't know if he's on the other side of it, at the same time the other conventional wisdom is nothing happens. >> yeah. you know, we really need to actually take a step back here for a second and look at are these hearings too little too late particularly in the last five months since we've had covid, they have amassed an unprecedented concentration of power. so these hearings are really much more urgent but i do think there's a really good point here that you actually were talking about, andrew, with bill gates earlier which is, yes, they're going to be looking at the antitrust issues but what about

this epidemic of mall information. we saw yesterday on facebook one of the very top most shared posts on facebook was misinformation shared by breitbart about covid. so, you know, these are the issues that -- white supremacy, all of the other issues are the ones that i think are so urgent right now that we really need to look at. >> joanne, alex, want to thank you. it's an interesting issue and we will see how it all plays out because, as you said, these issues with covid are huge at the same time, it's unclear i think whether antitrust unto itself applies to these issues on their own but there is an argument that the antitrust laws need to be updated, changed, looked at through a different prism. >> absolutely. >> we'd love to have you back to talk about what happens after all of it. thanks, guys melissa, over to you coming up, another big hour

of "squawk box" still ahead. we will talk to senator pat toomey for the latest out of washington on the next round of stimulus and later michael novogratz. we'll ask him, would you rather, gold or bitcoin.

good morning a monster week of earnings kicking into high gear results coming in this morning from dow components like 3m, mcdonald's and pfizer. we'll break down the numbers you need to know the gop makes its offer for the next round of economic stimulus worth $1 trillion. it was unveiled four days before millions of americans are set to lose government benefits

we'll ask pat toomey if there's still time to get it done. a very special interview with bill gates about the coronavirus, the spread of misinformation online and the need not just for faster testing but much faster testing. >> all these numbers about how much we test, the majority is just complete waste. you need to get it back as soon as possible so that somebody can change their behavior. >> highlights from an eye opening interview with bill gates as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" on cnbc i'm joe kernen along with andrew ross sorkin and melissa lee.

becky is off today she'll be back tomorrow. part of the pull back is mcdonald's that stock is off a little bit pfizer offsetting some of the losses treasury yields have moved back above at least earlier had moved back above .6 of a percent as you can see on the 10-year. >> joe, we have a big final hour of "squawk box" ahead for everybody, including more on the special interview from bill gates. he has interesting comments about elon musk. in a few moments we'll be talking to pennsylvania republican senator pat toomey about the stimulus proposal the gop rolled out and then we'll ask investor michael novogratz why gold and bitcoin are surging. negotiations for another round of coronavirus relief are ramping up in washington

unveiling major parts of their plan and democratic leaders met with white house officials eamon javers has all of the news. >> reporter: these details that the republicans released are a starting point for the negotiations with the democrats ahead of the deadline at the end of the week for the bonus unemployment checks to run out that's the headline. they want to scale that back it was $600 a week they want to scale it back all the way down to $200 a week through september. the concern there on the republicans part is they're paying people too much to stay at home and it disincentive advises them from looking for a job. they say by october they want to replace that plan with another one that would give you 70% of your previous salary on unemployment direct payments, those are definitely going to be part of this republican plan 1200 and 2400 for individuals

and couples under the $75,000 a year annual income threshold there's a second round for the ppp and companies with fewer than 300 employees and revenue that has fallen by more than 50% can go back and get another bite of the ppp apple there's $100 billion in loans. there's 105 billion for schools with an emphasis on schools that are physically reopening and there's $16 billion in there for states for testing so that's the republican proposal democrats said the $600 a week bonus scaled back to $200, that's simply not workable here's what chuck schumer said >> chaos chaos. you change the unemployment benefit, it will take weeks if

not months for most people to get it the economy crashes, people are hurt, they get kicked out of their homes, they can't feed their kids what are you doing >> so schumer and speaker pelosi met with the white house and administration officials yesterday at the capitol that's where the real meat of this negotiation is going to happen behind closed doors between those leaders. at this point we have no idea where this is going to end up or where people will get that and they can't act this week. >> pat toomey, good morning to you, senator where do you think we are? how quickly can something like this really get passed

i imagine it's another week or two. this one will be different from the previous bills in that the republicans will be divided on this one. this will be a different kind of negotiation. >> and in terms though -- let's talk about it. there's the republicans and democrats. you're talking about two factions even with the republican party how do you see that breaking down what are the implications for whatever we see ultimately in this bill? >> yeah. it's a good question i think there will be conservatives. $3 trillion in spending. another 3 trillion at least in

authorization for the fed. that's 30% of the entire gdp some look and see price signals that are starting to get a little bit worrisome sustained economy, gold setting records, silver on a rocketship. at what point do we say there's a red light flashing there the idea that we're going to pile on after the trillion that's already on the table another, what, trillion? that's going to be really, really problematic i think speaker pelosi is going to be adamant about spending more money to the state governments. they have taxing authority they have the power to get funds. she will insist on more. my guess is some of that probably gets in fortunately we do have the liability protection that's absolutely essential. that's in our bill but i'm really worried about where this ends up.

>> senator, let me ask you though in terms of the economy and what you think is at risk if more money is not spent. i will say the conventional wisdom, at least in the markets, had been going into the election i think the view was between the administration and frankly many republicans and also democrats, that people were planning or expecting the government would spend, spend, spend. no >> there is a high expectation look, i think this is going to pass in the end. probably another trillion, 2 trillion we're monetizing 60% of this, we borrowed the other 40% how does this end well if you keep doing it in increments of trillions. at some point we get to a point where it doesn't end well. some of these things discourage the reopening of the economy direct payments. the vast majority of direct payments went to people who didn't have any lost income.

we're going to do that again except on a bigger scale there's a lot of this that's worrisome. >> how concerned are you about cities and municipalities? we had a conversation with bill gates that we ran earlier this morning about the exodus that people may make from big cities and municipalities i know there's a big debate about whether they should be supported, so many of them that are going to be probably hurt the most are frankly in big states >> yeah. and let's be honest. this is like the final straw in many cases for these cities where they've been very, very badly managed for an extended period of time let's also keep in mind we have stood up a lending facility to provide liquidity. that has not been drawn significantly but that is available. we also sent a lot of money to states that is finding its way to municipalities. in my state of pennsylvania there's over $1 billion of the

c.a.r.e.s. act that has been set aside, not yet been allocated. that's going to cities some that has been allocated have gone to counties. they can allocate that to cities within their boundaries. so there's a lot that's already been done. >> what do you think the implications are on the election if a bill like this doesn't get passed and what's your expectation on the economy in the next several months >> i think the most important thing for the president, for republicans is clear evidence that the economy is strengthening. it certainly was, right, in may and june we need to see that continue for people to have confidence that we're heading in the right direction here i think that's the single most important thing. i think that's a reasonable expectation. look, again, in my state of pennsylvania, a big state, biggest state in the country,

the economy is recovering. we've had only a very modest increase in the number of positive tests it's mostly concentrated in one county, and we have not seen a corresponding increase in deaths or hospitalizations. that's actually true and there are important exceptions we should be all about getting back to work, reopening, ensuring that people have the confidence to know that, you know, with reasonable precautions you can proceed safely there's a narrow subset of our population that's very vulnerable we need toprotect them the rest of americans are not terribly vulnerable. >> senator, before we let you go, it's your team the fillies. do y -- phillies, do you think they should play after they played the marlins? >> yeah, i'd like to see them play this is a tough spot, boy. i sure hope we're going to be able to continue with the baseball season that has begun. >> we can all hope

we can all hope. senator toomey, thank you for joining me appreciate it very much. >> thanks for having me. coming up, interest rate y maven jim grant. they're kicking off their latest two-day meeting. the last time he was on we talked about what do you do in an environment like this buy gold and silver. gold and silver. that was a month ago. plus, bill gates on getting a coronavirus vaccine across the finish line. check out shares of mcdonald the dow component reporting mixed sector mixed results comp fell 24%. a little worse than analysts had expected u.s. same-store sales fell less than predicted they saw comp sales improve sequentially as the quarter went on u' w tuned yoreatching "squawk box" on cnbc stock slices. for as little as $5, now anyone can own companies in the s&p 500,

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fed reserve officials heading to capitol hill. there's a debate in washington over additional stimulus steve liesman joins us with the latest cnbc fed survey steve? >> good morning, melissa our panel of 41 financial strategists, economists and fund managers see quite a bit more stimulus coming from both congress and the federal reserve and they cee lo rates for a very, very long time take a look at the fed-spectations. no change from the july meeting. the next move now seen as a hike but not until august 2022. that's two years from now and eight months longer than our

prior survey so the fed has convinced markets it is on hold at just about zero for two more years 9.2 trillion on the fed balance sheet. 6.92 trillion now. 66% say more is indeed coming from the federal reserve we asked what more is coming from the federal reserve you see there, 56% say some form of what they call database or economic database forward guidance 39% say more qe. 39% say bond yield caps. that's grown in support from the last survey. 15% say take no new actions. 10% say date based forward guidance moving on to congress, 1 point be point 4 trillion is the average size of the expected phase 4 package. 1 to 1 1/2 to 2 trillion answer we got there now taking a look at the best way to extend the unemployment

insurance in washington, they like the republican idea of tying it to a percent of the pre-pandemic wage. at the time we asked the question, we didn't have the percentage they like less the idea of a fixed amount 5% say just let it go. lynn reiser say the fed's tools are ill equipped to fight the ongoing covid-19 the various monetary instruments has widened the gap between financial markets and the real economy. joe, we asked about kevin o'lea o'leary.

90% say the government should let the market choose the winners and losers at this time. hopefully jim graham is listening in wall street journal lead editori editorial. every time you're on, jim, we move further down the path it seems to sort of central bank control, if you will, of the economy. last time you were on we didn't have much time left and i was asking you a long question about what the hell to do with the stock market, technology, bonds. you said buy gold and silver that was the simplest answer that you could have given me that was about a month ago it's happening already >> yes well, you mentioned the road

we're traveling. it seems not much road left, joe. the fed is challenging a notion that there's scarcity in the world. the fed and the treasury together are challenging that notion supposedly according to a new regime, one can borrow indefinitely at interest rates of nothing or less than nothing. it's quite a show. i'm still trying to acclimate myself i think the rest of the world is in the same boat very new and very different. >> amazing here was my question, and, actually, technically if you look at gold since 2011 when it was challenging the $2,000 mark back then, it is a beautiful saucer bottom that looks like it is consolidated. it was confounding to me to try to understand why it didn't keep

going higher because we never turned off the spigots, zero interest, emergency measures we never got back to normalizing anything globally. why didn't gold move sooner based on all of the accommodation we've seen nonstop for the past nine years. >> joe, i certainly tried encouraging it one of the nice things about gold is it's both dumb and mute. unlike the central banks who can't stop talking, gold never opens its mouth. you never know what it's thinking and those who try to explain it are imputing largely their own hopes and wishes on that ever so quiet metal why didn't gold go higher? gold is kind of a legacy monetary asset which has something in common with bonds today that yields nothing.

in fact, 14 point something other trillion yield nothing that's a high yielder. gold historically has competed with alternative forms of money. using monetary assets, paper currency, competes with credit which is the promise to pay money. ultimately it competes with interest, with real interest rates, of which we have very few. almost nothing in the world is yielding more than a 2% rate of interest so it has the field almost to itself with regard to competition from interest. that's a new thing gold also competes with the confidence of people in the institution of fiat currencies, with managed currencies. you could think of gold as kind of the reciprocal of the world's

faith in people left to their own power. it's one divided by confidence the dollar exchange rate is part of this mix. gold and silver, very, very -- very, very necessarily speculative assets we don't have a price earnings ratio. don't have a book value that are largely sentimental. in addition to being, of course, a rather arithmetic competition with the afore mentioned interest rates that's also not so pretty if you -- >> i assume that gold and silver, you can't talk them into allowing central banks to do this because of covid either you can't say, hey, look, we're sorry, this is different, we need to pull out all the stops and you need to behave yourself because this is what we need to do this is unprecedented. it's been a long time since we've had a pandemic how does this -- i understand gold and silver probably have a bright future, but what about

just in general the world now that we're reaching, as you say, the end of the road in terms of even thinking a scarcity of anything what does that look like for economies and for growth rates around the world for gdp and for the prospects if we just -- you know, where money becomes basically, you know, like you need a wheelbarrow full of dollars to buy something if that's what we're looking at >> it's not quite clear what a rise in gold price might be discounting. you mentioned wheelbarrows, dollar bills, that is one possibility that is a van i shallingly remote possibility. gold could also be discounting a

form that would instigate still further central bank action. you mentioned earlier, the fed wisely with gold and silver not taking into account the wholesome main motives of the fed and other central banks in trying to prop up economies who will otherwise be sagging even more no, gold and silver take into account. it's all about outcomes. not about motives. it's not about unique epidemiological difficulties this is very cold blooded business wondering where the future of gold and silver, seeing that future is less good than a while ago. >> scary melissa? >> jim, it seemed like the rally in gold really took off when really yields went negative back around the march equity low bottoms. i know -- it sounds like you

think that the conditions that caused them to go to a new record will remain intact. when you look out on the radar, horizon will not keep this rally going, will not keep the price climb in gold and silver. >> absolutely one can mention that as i mentioned a few minutes ago, i was one of the people who forgot to turn bearish on gold in 2011. joe mentioned the gorgeous looking saucer bottom but that bottom which in counter terms only lasted nine years to some of us who were bullish lasted many more years than nine. i'm here to tell you that gold and silver can be most treacherous friends. they are speculative assets and the positioning has a lot to do with it.

the question is today what else do you do with $1920 in gold is that money well -- is it better placed in bonds well, i would say no i would say that a bond is a promise to pay money and that promise is being i would say debased. central bankers tend to make the currencies lower in that respect i would say gold is not over valued my goodness, that's a subjective view. insofar as one can see in the future, i feel the field of vision is rather short central banks could announce their intention to keep rates low or negligible, less than negligible for years to that extent i think that gold

has a fairly bright future. >> we see -- remember ten years ago we had -- we had forecasts of 5,000, 10,000 an ounce. maybe it's on -- i've seen people say given the current environment and prospects for it, that a double from here is not like totally out of the question, jim. time will tell we will have you -- who knows. we will have you on as we watch this i love listening to just the history of fiat currencies and everything else and the way this works. >> coming up, investor michael know v novogratz will join us earnings due from all of the faangs minus netflix what a coincidence, the four ceos will be in front of congress tomorrow. they will weigh in on all of

that including bitcoin, tesla all of it here on cnbc

coming up, more from that rare interview with microsoft co-founder bill gates. hear what he has to say on controversial comments elon musk made early in the coronavirus crisis as well as vaccine candidates that are currently in development. also, the spread of siorti on minfmaonsocial media stay tuned, "squawk box" is coming right back.

welcome back to "squawk box. microsoft co-founder bill gates has deployed more than $300 million towards combatting the coronavirus. he said the coronavirus is dumb. >> elon's positioning is to maintain a high level of outrageous comments.

he's allowed to say these things i hope he doesn't confuse these areas he's not involved in too much >> and in that interview with bill gates there's a second wave which are cheaper, could be more effective. johnson & johnson has a particularly good vaccine.

we live every day with our vaccine experts talking about this how we put the world's resources isn't just driven by a normal market thing this is cooperation within countries and across countries. >> i asked bill about the profit motive for companies that are going to be producing these and what he thinks of that philanthropy and government money is supporting covid. >> well, for the develop countries, it's only companies that offer a very low price because raising money to help those poor countries, so far we haven't been able to raise the money. even if the vaccine is, say, less than $3, you'd need over

$10 billion to get two doses out to all the poorest there we're more strict. it's the marginal costs the donors will be willing to pay. if you took money from barda, the u.s., the question is did the u.s. require a low price in return for that or what was the de deal the u.s. is to be congratulated in funding more r&d and that will help the world. that is the one category to get a positive grade on the pandemic response figuring out what the pricing is going to be, what the volume availability for the world at large is going to be, that's still very unclear we're trying to create a dialogue and find out, we need

companies to add to it and that's unprecedented our technical is advising on how that can be done. >> related to that, we just had the ceo of moderna on. there was a story in "the new york times" over the weekend, over $1 billion of insider stock sales have been happening from the participants or moving forward with a number of these vaccine efforts. how do you feel about that do you think the taxpayers and policy makers should be looking at that? >> well, you'd have to say was the barda deal done in a smart way? when those are opened up, we'll look at that my hope is that this whole innovation of the pandemic is that pharma companies want to help out some companies are doing better

on that than others. that will be very important. >> and as we have been discussing all morning, ceos at the helm of the state's largest companies will be addressing a house subcommittee and i asked bill what he makes about spreading conspiracies including his own involvement in all of the covid -- this covid pandemic >> definitely when you let people communicate, you have to deal with the fact that certain incorrect things that are very titillating can spread very rapidly compared to the truth. we've always seen that with vaccines any negative thing gets out to people and the -- you know, the facts about, no, it's safe, it doesn't cause autism, that travels very slowly by comparison and social media can make that even worse so the degree to

which the media companies can see what's being said on their platform and take things that are absolutely wrong and get rid of those things or slow those things down, that's very tough because as you move over into political speech or a valid discussion about the safety issues, how you divide that line, that visibility, these are complex issues and, you know, it has been a spreader of lots of negative things. how do you strike the balance there. say that again. >> do you think you would take a harder line? the reason i ask is mark zuckerberg has been very firm about covid news he's actually all over covid news, tries to keep it -- tries, i think, to deliver the right news and tries to filter out

news that isn't but when it comes to, quote, news news he's more -- if i said liberal or progressive with it people would think that was a political statement, but it's not. >> well, some of the messages on our platform they don't see because of the encryption in whatsapp and so they -- in order to not have any responsibility they've made that opaque so whatever the issue is, antivaccine, child pornography, they have made sure they can't intervene on those things. different countries are debating, you know, is that appropriate. is this idea that you can't -- when you have, you know, criminal activities or different things, the government is blind to what's going on there i don't know that that'll come up this week i think this week is more of an anti-trust related thing certainly reminds me of when i

went in front of the congress, i wish them well >> let me briefly ask you about that though because we talked about how important competition has been in trying to find a vaccine in this time is there enough competition in the tech world today, do you think? >> i think over time the tech world is naturally very, very competitive. now i'm not saying that the authorities have to be totally la lassez-faire, but i do think people under estimate that natural competitive forces do come into this space we saw that, you know, as mobile phones came in, that was hyper competitive. the prices keep coming down, products improve there are some things like branded merchandise, controlled

marketplaces, it will be interesting to see how that gets regulated. yes, i think of tech as even -- without massive regulation, that there will be a lot of innovation >> two quick notes, guys i don't know if you heard it, but implied at one moment when it comes to facebook, for example, that part of the encryption strategy is almost to escape responsibility for some of the things that go on on that platform, which i thought was an interesting comment. the other thing i wanted to mention is you can watch the entire interview with bill gates, you can do it on cnbc.com he makes other news in the interview which is worth watching in part because he's been working behind the scenes in washington, both with democrats and republicans and members of the administration to try to add to the latest supplemental covid bill so that countries, especially emerging markets and others, get funding and subsidization for covid drugs in part because they

couldn't have the money to do it if they don't have access, it will come back to countries like the united states and rebound as well that's an interesting moment that's worth watching. watch all of it. we'll put it on the "squawk pod" for the podcast list eners. >> the world is all connected. we're in it together speaking of encryptions. i thought his answer to the moderna insider selling was encrypted. what did he say, andrew? you said, is it okay he said, if the barda deal was structured properly. i don't -- >> i think that he's -- i think that there are questions about the way the barda transactions have been structured, about what the requirements have been on companies and that some of that's been opaque and not public yet in terms of what companies can do, what they

can't do, how much they're supposed to be able to profit. we don't know that part yet. >> it still doesn't get to the point though, yes, we don't know what the government will pay for a moderna vaccine versus the pfizer which is $200 million in order to guarantee a certain number of doses. it sounds like he's saying if we know how much we're going to pay and there's transparency, go ahead and let him sell the u.s. government gave $1 billion to moderna to fund this vaccine. >> that's the difference whenever we talk about a company that's in the business of saving lives it's different than just a tech company wow, this entrepreneur had an idea, he put his money on the line, he hit it big. god, it's the american dream he's allowed to make a lot of money. we always wonder why pill companies, if a pill costs 4 cents, why can they charge

$40,000? we have to explain the innovation, but what's unique this time is the government is in the business of providing a lot of the risk capital to the companies. then you have another thing thrown into whether the profit incentive is the same as with a private company doing it, right? so it's -- we should have a discussion about it. maybe another -- it's only a three-hour show and i don't think they'll give us an hour on "squawk on the street. probably we can ask we'll ask cramer, he's coming up. coming up, investor mike novogratz joins us live with his read on gold and bitcoin stay tuned, "squawk box" will be right back and northern trust delivers more. with specialized expertise. proven strategies rooted in data and analytics... and insights borne from over 130 years of successfully navigating economic turbulence. giving you new clarity. inspiring confidence. and helping you uncover new paths forward.

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welcome back to "squawk. new york governor andrew cuomo furious about a concert on long island last saturday he's appalled, he says, by egregious social distancing. the department of health will conduct an investigation we have no tolerance if you're saying to yourself, why is wall street all a twitter, it's because of a unique twist the concert which featured goldman sachs's ceo david solomon in this case as d.j.dsol it was planned as a drive-in the whole idea, if you will, was that people were going to stay in their car or stand around

their car and stay socially distanced. as you can see on the screen beings that's not what happened at all there's a bit of this taking place on wall street commotion inside and outside goldman sachs, emails whizzing around and the fact that the governor has gotten involved and pointing out this particular event and of course david solomon's involvement in it. goldman sachs gave us this statement. david agreed to participate in an event for charity in which the organizers worked closely with the local government and put strict health protocols in place. he performed early and left before the show ended. the vast majority of the audience appeared to follow the rules, but he's troubled that some violated them and put themselves and others. to some degree he's just the

talent but, you know, people question people's judgment in this case. meantime, when we come back, we're going to get jim cramer's first take on the day, the markets, earnings, so much more. lots to talk to him about. then investor michael novogratz will talk to us about tech and the surge in gold and bitcoin. stay tuned, "squawk" continues after this

headquarters, jim cramer joins us now i saw 3m and they said, wow, it was bad but it's not as bad now, got better as the quarter went on similar comments from mcdonald's things seem to be improving. is that a microcosm of the country, jim, or is that about what's happening >> absolutely. micro man, michael will be talking about how the land four weeks have been terrific, mcdonald's is adjusting. obviously we saw trough already so people want to buy these big

cap stocks look, there is still a belief, i think, that you've got a trough and things are going to get better and better. i am a little more let's say circumspect given the fact that when you see how quickly this thing still spreads i don't want to necessarily say that things are done, particularly because of aero space. raytheon is very adamant that we are not going to see a rebound in aero space until 2023, joe. 2023 is a long time from now so i think that raytheon is an honest broker, the stock is up, it's greg hayes, he is a straight shooter we need to see aero space return. >> does fed stop or does faith i don't know improve what comes first >> right. >> thanks, jim. >> great interview by andrew on gates. >> we will see you in a couple minutes. thanks four of the biggest tech companies, the faangs minus netflix set to report earnings

later on in the week mike novogratz, always good to see you. >> good to see you guys as well. >> the shades are super cool you've said in the past that you've missed the tech run and that you think that it's a bubble, a fed-induced liquidity bubble that's causing this akin to the bitcoin bubble in 2017. does that make you want to short tech have you been short tech >> you know, i've taken some shots at it, but, listen, great bull markets don't die easily. it looked like tesla put in a high at 175, huge volume, huge option volume, came out, closed, earnings came out great, couldn't hold its bid. yesterday it explodes 8% so, you know, this bull is not going to get put down with one arrow. we'll see. i think, you know, this week will be really interesting i use tesla as a bellwether for all that energy in the story stocks, there are plenty of

others you can use i do feel like -- people kept asking me why wasn't bitcoin rallying bitcoin still has a lot of retail interest in it and i think a lot of that retail interest shifted to the story stocks, the tech stocks because they were more fun, moving faster, you were making more money. now that these things have rallied so far and might be at some pause i think yesterday you saw a lot of money shift back over to gold and bitcoin. listen, we are in a speculative bubble this those stocks, call it whatever you will, it's hard to call a top and so, you know, if you do, do so, you know, quickly and at your own peril. so i have taken a couple shots at it, you know, sometimes with some success, most times not with success my core positions have been in gold, bitcoin, silver and those are -- those are working great. >> yeah, and i wanted to ask you, you know, i usually talk to you on "fast money," we like to play the game would you rather

so here is the question, would you rather gold, record high here, orbit coin over 11,000 at one point? what's the best value? >> i think i would rather do bitcoin. bitcoin is trading at an 80 vol and gold is probably at 20 vol so your positions have to be sized accordingly. we are early in the adoption of bitcoin, i'm seeing more institutional investors slowly moving into the space. they can't run into the space because it takes a while for them to learn how to buy t we just did a partnership with case which is going to allow the whole wealth channel to participate in a simple bitcoin fund it's products like that that i think are bringing this new group of buyers into the space gold has been around for 3,000 years, it's pretty easy to buy, you call your broker i think there is an adoption game in bitcoin that you don't have in gold, but i like them both we also just took out 10,400 in bitcoin so that opens up a much

bigger move. >> brian kelly was saying that he thought bitcoin could go to, i think it was 50,000 in 2021. it is time to come out to trot out some of the bold bitcoin forecasts, you know, in the days of 2017 they were a dime a dozen? >> yeah, listen, 2017 was a wild speculative bubble and so, again, it's like picking the top of tesla, you are just throwing a number out there and it's going to run out when there's either just, you know, buyers' exhaustion or some poll po si move great bubbles usually end with policy moves, fed raising rates. doesn't look like the fed is going to raise rates this time it could be biden election and we have much higher taxes that could end this bull market, but the liquidity story is not going away i mean, nancy pelosi is already in for $3 trillion versus mnuchin, you know, $1 trillion in what they're doing. we're going to get a big stimulus.

>> you are not giving me a forecast, is that the bottom line >> i have give you a forecast. we will be at 14,000 in the next three months could we be at 20,000 at the end of the year? easily i was saying the same thing with gold gold can go to 4,000 or 5 -- like once you take out old highs it's something that's just valuable because we say it is, there's no real fundamental value where gold could go, it's going to go as far as animal spirits take it and as long as this liquidity pump globally is turned on i think gold and bitcoin will go a lot higher. >> can you give me an idea of the size of these positions in your portfolio i mean, gold, for instance, is a percent, bitcoin as a percent. give us an idea of how you're thinking about these two >> well, i'm the ceo of a public crypto company and i have my crypto assets in that company so that's now, you know, the stock has rallied a lot and so, you know, it's a higher percent of

my net worth, it's probably, you know, 35% of my net worth and you can think half of that company is bitcoin so i probably have, you know, 17%, 20% of my life in bitcoin. so i want it to go a lot higher. gold is more of a 5% position. gold would be higher, quite frankly, if i didn't have so much bitcoin. >> and equities because of the run a big -- >> i have very little in equities other than i've got big private investments, right we have a big stake in bojangles', a fried chicken company. you've got to bait all that to the market i look at how the quick serve restaurants are doing and i feel good about, you know, you look at a company like wing stop which is now almost a $3.5 billion market cap selling chicken wings out of strip malls, the market likes quick serve restaurants, people are going through drive-thrus. it's hard for me -- but i don't have a lot of just long s&p or long individual stocks

>> right you mentioned the drive-thru trade during one interview mike, i'm curious because you keep mentioning tesla, i don't have to ask you about it, you keep bringing it up in the context of a bubble. is that one of the biggest bubbles you see in the equity markets right now? there is a reason why it's on your mind. >> partly because it's the story that encapsulates this what i call story stocks. you can look at, you know, wing stop, wing stop is trading at, on, 80 times earnings for a fried chicken company. you know, there are -- anything that is showing growth right now the market is flooding to. >> right. >> some of these are great companies, they will be around for long periods of time, i just think they're going to have to be perfect to even come close to the valuations that they're getting tagged with. so that usually doesn't last >> mike, it's always great to get your thoughts. we appreciate your time. >> thank you guys. >> mike novogratz of galaxy

digital. let's take a quick check on the markets. we have a flood of earnings across on the tape, dow looking to lose 73 points at the open, s&p looking to be down by 7. nasdaq looking to be down 17 >> thank you ♪ >> good tuesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber. futures are a bit soft as earnings are mixed from a handful of very big players, 3m, mcdonald's, pfizer, raytheon, the gop proposal is out, two-day fed meeting begins, bernstein cuts tesla to sell watch gold as they were just saying hit 2 k overnight but has settled back jim, we do have some earnings to chew on, but there's still a lot on deck for later in the week. >> look, i think that many people want to be able to say we've seen the