earnings a fed decision political fight over stimulus. becky quick is in the house or on the show. the latest of the big stories likely to dominate it is wednesday, july 29, 2020 it is wednesday and "squawk box" begins right now good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick with joe kernen and andrew ross sorkin i'm in the house from the house. >> where does someone on

vacation go when they can't leave the house? >> nowhere just sleeping in and hanging out with the family. >> you look over, 3:50, those losers are up. is this me >> this is me. >> good. i finally rattled you. difficult to you >> i rattled you watch the silliness. we are hearing a lot of things >> sharing you were twerking, i figured i better get back quickly. >> nobody wants to see that. you can't unsee that >> u.s. equity futures at this hour, let's tell you quickly things are down for the markets.

the biggest decliner is the nasdaq no surprise because of the hearings happening today for the big four the nasdaq off 1.257%. the s&p indicated up by 9.5. there is so much happening today. we'll hear from boeing general motors general electric and others before the bell. we are keeping a look at what's happening from the treasury yield this morning the fed conference the 10-year at 0.589%. andrew is going to tell us about one of the big things we are watching today >> the big one, the nasdaq will be an historic hearing featuring the ceos of apple, facebook, amazon and google answering

questions from big lawmakers probing the lawmakers. apple, google, microsoft and amazon the first time bezos has ever testified before congress. with prepared statements released, they're argue the companies' success come not from a monopoly but ability to give customers what they need and what they want they all come from different perspectives they all have different issues we'll hear about censorship and free speech in addition to market power and governance

issues all sorts of things. we'll see what kind of outcome there is from all of this. >> that is some serious juice all in one room. >> sort of in one room if these guys tip congress 20%, i think we could do the next round. they are good for a trillion anyway if they pool their resources. >> jeff has made $70 million, on paper, since the beginning of march. >> i thought it was like $9 billion the other day. >> his ex is setting up her philanthropic effort she has 4% or something. she just looked really content

she had this big smile $59 billion. would you not like to spend the rest of your life giving that away to things that are important to you that would be an awesome way to spend the rest of your life. >> what picture did you see? >> couple of things, she changed her name not sure if you saw that there haven't been many pictures she hasn't been out publicly all of the pictures i've seen are old file photos. not saying she's not happy >> i understand. i notice she did change her name i figured out who it was

she had $59 billion. that does narrow it down for me a little >> the other big story today, the political fight over its next coronavirus relief package. senator mcconnell says he's not going to pass without the protection issue >> we are not negotiating over liability protection i'll be responsibility for putting the final agreement on the floor. it will have protection in it. >> democrats generally opposed legal immunity for businesses. >> that's a tricky situation i can understand there is a lot of businesses that want to make

sure they are not going to get caught in legal jeopardy but the language they put forward is incredibly broad when you are looking at the situation where the unemployment has run out and it is a situation, i would argue that tech story is one we are all watching because of the star power in the room. probably the more important story is what is happening behind the scenes. this is going to determine where the economy heads from here. >> it has thrown a lot at it already. the fed and jay powell seem to say we've done what we've done and they are kind of passing it off. >> you highlight it the way one

side and people are in their corners. exactly the way you would expect people to be in with the same talking points from each side. sooner or later, watching that bar thing yesterday, i don't know whether the two sides come together ever again. it was surreal >> maybe if you had to figure out how this was going to come down. maybe they get to $400 a week for some time to come and compromise on the business liability where they change the language where it is not as forthright as it is to ease that a little bit seems like that would be the only way to get a compromise but i do think there is extreme pressure on both sides to get something down. >> what do you do on the liability language you are either going to protect everybody or you are not i think about the marlins.

there is a situation you have an organization that might actually would have been liable for almost negative -- negligence if the phillies would have gotten it from them you don't want to give people a blanket immunibility >> the legal ease was very specific about an incredibly low bar. remember kayla was telling us, you would have to prove that they were intentionally trying to give you coronavirus. that is different than just saying, okay, if you are following all the guidelines and doing the best you can, we are not going to hold you liable

saying you then go on to prove saying they could give you coronavirus. that would soften it a little bit. >> fingers crossed >> i wasn't saying they got it saying, there is an example of two businesses >> my point is that they played. basketball, if you play a basketball game with someone who had it baseball you are running past the guy. but a lot of guys are wearing masks even when they are hitting. football, it makes me wonder baseball is our one hope trying to do 60 games and you are postponing three or four or five games

i don't know i do know i was feeling pretty well >> tennis is our only hope >> i dot under or over and who wins i was like the first three yesterday i was good i had cleveland and -- let's not good there we'll try to stamp out that silliness. >> we'll tell you about some earnings just in from music streaming service spotify. compared to an estimate of .45 euro cents the range was extremely wide ranging from a loss of 2.39 euro cents. those are taxes they accrue for stock-based compensation for employees in sweden. revenue was very slightly below

forecast but did see a jump of total active users to 29 # 9 million and premium siubscribers cfo will be a guest on closing bell among some of the names to watch, you've got starbucks posting a smaller than expected loss and saying it is recovering faster than forecast they believe same-store sales could pick up by early next year that stock is up better than 5.5% visa shares are trading lower. volume there dropped after businesses dramatically dropped spending they are seeing payment volume

pick up. that stock up. and fireeye shares jump. benefitting from a shift to cloud based products up better than 12% >> coming up on the other side of this break, dr. scott gottlieb is in the house to talk about today coronavirus headlines. check out this morning's biggest winners and losers stay tuned to squawk here on cnbc save hundreds on your wireless bill

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. welcome back to "squawk box. moderna is going to price the coronavirus vaccine at $50 to $60 per course that is more than others the financial times reports the price would apply to the u.s. and other high-income countries. >> and the federal report finds outbreaks are enough to call the red zone as of july 26, 21 states are in the red zone with missouri,

north dakota and wisconsin the latest additions >> joining us now is dr. scott gottlieb form fda commissioner, cnbc contributor, on the boards of pfizer and illumina. great to see you this morning. >> thank you >> i was hoping to walk through with you the back to school situation. i've been focusing on the new jersey situation because that's where my kids go this is playing out all over the country. you have people in towns on both sides of this debate, you have people very eager and others who are very concerned about how the schools are going to do this they want to make sure there is only half capacity and going partially or part of these times. this is a bit of a mess.

the teacher's union said they don't think september 8 is a safe start time. it may me think we may not see school opening in some counties and states what is the latest you are getting? >> school districts are starting to survey parents and finding the majority of parents don't want to send their kids back in maryland, they went to a distance learning model because so many parents said they didn't want to return they need to take measures to prevent the outbreaks from happening. there is a lot we've discussed we are learning kids can spread the infection. they do spread the infection when they are symptom magnetic

with err seeing rising hospitalizations of kids in florida. it has been epidemic down there and kids did get infected. as we get into the school year, you'll start to see more cases of bad outcomes. a low number but sufficient number we've seen an epidemic in the south, children do develop this multisystem inflammatory syndrome you are likely to see this happen in a lot of states. that could tip the hand at a lot of districts as well >> loorking at king at it, the union has raised the appointment that they don't feel safe, they don't have the resources to get through these.

the staff has been surveyed in our town of the 53 staff, a third has said they will not come back at full capacity five days a week how do you hope schools like that >> it will be hard to do teachers are going to need proper protective things they can lower risks wearing masks, keeping students in small pods. de-densifying or going to a high brid model or staggering through the day. putting in a better hvac system, trying to hold classes outdoors as you can in the fall there are steps schools can take

to try to lower the risk no country has opened the schools against the back drop of the epidemic with the exception of sweden. but they also went to the pod model. we need to take measures to prevent outbreaks. that can be done in states like connecticut, new jersey. more difficult in states that are still having an epidemic to open against that back drop. >> where do school sports fit into this? we are talking about major league baseball. in our state, most of the kids are practicing right now with lacrosse and volleyball. >> i would priorities in class learning make sure you can do that

successfully and hold off on extra activities right now like sports that aren't directly relevant but also create morris being. that is a vehicle they can get infected maybe there will be a point later in the year we can restart those. make it slow and about getting kids back in the classroom first. >> i hesitate to ask you about the moderna story. the price point looks like it will be higher for pfizer. you are on the board at pfizer from the public policy perspective in terms of pricing. i look at it and say, let's just get a vaccine before we worry about how much it will cost or fighting over these things

what do you think of the issue on this? >> i'll make a point on the pricing not relative to any company. the pfizer price was in the neighborhood of how a flu vaccine gets prices. i think that will allow a sufficient margin and profit that can get reinvented to manufacturing and a next generation vaccine making these isn't trivial it is not the higher margin businesses profit doing it at a tremendous scale. there was a statistic that sanofi was doing that. large scale manufacturing. you want the large companies to have a reasonable margin to put

back into the next generations of vaccines. i don't think this is one and done >> that's a good point thank you. >> thanks a lot. >> we have some earnings crossing from general electric revenue looks okay 17.7 billion was above the estimate on the street the adjusted earnings per share is a little bit worse than where we were. minus 15 cents the estimate was a loss for 10 cents. 17.1 million was the estimate. it was 17.7 organic revenue.

orders down 38 percent year over year industrial free cash flow of minus $2.1 million that is better than the guidance of negative 4.5 billion provided the a conference led by collections across all businesses in commenting said the ge team remains focused on protecting the safety of our people, serving the customers and communities and preserving our strengths and colleagues we had a challenging quarter we met ahead on while we took actions to further impact our company. the industrial free cash flow

was better than our communicated range. then just for the future, we are still working through a difficult coast environment. it is too difficult to project the trajectory of aerospace or aviation, we can expect the prolonged return to prior levels of activity. growth in the second half of the year is achievement and possible in 2021. that's basically the highlights. 6.9 where the estimate was stock is up 3% 21 cents because it is a $7 stock coming up, we've been talking about the ceos of alphabet,

apple and facebook that will testify before congress. social distancing. i thought it was four guys together will be interesting. are they going to be mad at them because they are so successful >> we'll talk about the unprecedented wedge created by these companies. you are watching "squawk box." stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership.

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one of the greatest displays of personal wealth when the ceo, apple and more will be testifying in an historic hearing because of the wealth that has been created by big tech robert frank joins us with the numbers. >> the market cap of these four larger than all the companies on the london stock exchange. the combined personal fortunes greater than the gdp of austria. jeff bezos has gained $67 billion this year alone.

his personal fortune larger than the market cap of mcdonalds or miky mark zuckerberg the world's third richest person behind bill gates. the combined wealth now over $400 billion with a gain of over $90 billion. bill gates was worth about $78 billion when he went before congress in 1998 before that, you'd have to go way back to find fortunes on this scale before congress rockefeller, he was worth about $25 billion in today's dollars andrew karn gi worth about $11 billion in today's dollars all but facebook are in the

trillion dollar club just under $5 trillion if they were a stock exchange, they would be the fourth largest exchange in the world right behind tokyo back to you. >> robert, thank you what are you anticipating today? maybe since it is bezos' first time out that is the dominance. you look back to this issue of some of these gilded age guys.

they've said we've had you haven't heard anything new when we come back, general electric shares rising for more next. as we head to the break, we look at s&p 500's winners and losers. 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.

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well cocome back to "squawk box. shares of general electric we have a 15-cent estimate that is not smaller. it is larger revenue also topping consensus when you've got negative numbers you have to look at. the principal and industrial strategist you said, brian, obviously commercial aviation, no one is predicting gang buster results there but somehow the company was able to report

you would say narrower losses of $2.1 billion $3.5 billion to $4.5 billion negative they were able to beat on that line where was the outperformance given where the company was predicting back in may >> sure. first of all, remember, this is general electric magic fluid of life. it will take a while to get through this we knew aviation was going to get pounded. also for raytheon technology where they had a write-off this is not about the quarter. in my view, that stock is up they shored up $10 billion of liquidity this quarter that's what really matters

you had five aviation bankruptcies lately. you look at the power results that came in weak plus the write off capital. you were anticipating a big hit in aviation. >> we all wonder about buying a stock that is single digit with the great past the company enjoyed. we all think it would be a great stock to recover you have a $15 price target. >> i do. >> people have had price targets much higher than where the stock is for years and years and there has been nothing but pain.

how long term are you talking about. >> that 15 with covid, that's an aspirational two to three years out. i would be thrilled if i saw 10 in the next 10 to 18 months. what does that assume? that aspect to recover from covid. i think the world does that. we are gradually moving in that direction. that is long term, the whole nature of the buy, the confidence at the time is when he took over at ceo, that was

180-degree shift >>. >> from the cash and preserving the wagons, what else is he doing and what do you suggest he does to position general electric for the next five years. >> are the assets as great as anyone deserves? probably not assets can be grate. if you make some sub optimal positions. the potential is there when you

run them right it is obviously under pressure now. >> that is a macro thing the health care business is solid. power is a work in progress, i would expect there is some progress being made but also some work to do. >> brian, thank you. i appreciate it. we'll use you as a resource and see you again. $15. i see the pain in your face, $15 and you'll be smiling a lot more larry culp at 10:00 at squawk. when we come back, the ceos of the largest tech companies head to capitol hill today we'll tell you about what to expect, straight ahead (vo) since our beginning, our business has been people.

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welcome back take a look the equity futures at this hour the s&p up about 10 points we have a lot of earnings news amc striking a deal that will allow movies to stream after just 17 days in the theater we'll see if other studios make similar deals for theater viewing and getting those films into your homes. big news >> we aren't eligible for

regular emmys. i looked and looked and looked i saw "ozark" and other stuff. >> we could go for a day time emmy but that's a different group of emmys >> different group do we still have those -- i can't even say it, the cable ace awards that was the event of the year no, no we'll take anything. >> you know what we honestly just won, honestly >> no. >> a gracy award for the podcast for the squawk pod huge congratulations to katie cramer >> we won something? i'm seriously excited. why don't i know this? >> breaking news

breaking news. >> is there an actual thing that we have? >> there is. a statue comes with it it is beautiful. silver or platinum >> it is a great podcast >> what is it? why is it? what does that mean. what's a gracie award it is an award for women by women named after gracie allen pretty incredible. >> awesome we'll share in that. >> it is katie's it is katie's. she's the one that makes it so great. >> all right we are happy for her >> no cable ace awards coming up, ceos of companies representing 16% of the s&p 500

market cap are testifying before congress today i just want to see how above jeff bezos is anheosthd lt at laugh he used to have years ago. he got a new, very deep lap.

welcome back to "squawk box" historic antitrust hearing taking place in a few hours from now. ceos of amazon, apple, facebook and alphabet will be appearing before congress to answer questions about their power endowments for you companies make bullpen 16% of the s&p 500 total value joining us right now to talk about the hearing, is jeff a lot of fair questions to be asked about these companies, their power and dominance. i'm out of the consensus here. i'm not sure there's an antitrust case to be made against any of them. but to the degree that you may have a differing view, how do you see it well, i think you ask about there being fair questions there's a lot of unfair questions to be asked and they will be asked. this will not be revenge of the nerds because people are the

wealthiest nerds the world has ever seen? is it revenge of the wannabe nerds. yet at the same time there's a lot of admiration for these people these are the smartest people that ever appeared before congress you think, though, also there's something a little bit more attractive to them they are role models so many unlike the 1960s where you had the steel industry or auto industry, tobacco industry, people who were vilifievilified here's a group where they created so much employment you mention their opening statements are different they were in tone but also tried to stress their american roots they had an american dream aspect whether or not it was immigrant origins for some or for the american economy what they didn't do is interesting is they didn't do

what you guys would know so well what jamie dimon did when he came before congress jamie dimon was out there preempting criticism by telling them things we did wrong, we could have done better not one of these opening statements admits anything that they've done wrong other than a below average statement we all need to work harder at something or other they could have taken the within out of the sails by talking about privacy issues, by talking about issues that have to do with hate speech some of these really -- not to mention the size issues. issues with bias in systems. >> jeff, let me ask you a question classically when you go back and look at the rock fellers and you look at at&t, the arguments for breaking companies like that up were typically that consumers were paying a higher price and one of the unique features

of this moment is that all four of these companies have historically lowered prices or at least it has appeared as if consumers are paying less. i know there's an argument to be made about whether that price could even be lower than it is today if not for the size. but the question is whether the antitrust rules unto themselves as written today based on the sherman act need to be reframed, rewritten, adjusted to reflect today's reality if you believe that today's reality poses a problem for our economy long term >> well, neither one of us are attorneys but we both can try to play them. there's clayton antitrust act and section two may be more relevant than sherman. having to do with anti-competitive issues on access or other ways of starting new businesses you're right, the cost to the

consumer, especially say in the amazon case, it's hard to benchmark the other. it's come at a cost. since joe mentioned of jeff bezos last appearance on "squawk box" 20 years ago that almost 50% of retailers have disappeared. now it's not completely amazon's fault, of course, and maybe some of that needs to happen. there's a lot more efficiency brought in it has come at a cost. this is, i think, a lot of people will be wrestling with. we'll see a lot of the agency craft, a lot of theatrics the antitrust issues are less pronounced for apple but apple does have their issues there's something that's a challenge that would challenge you, andrew and say they've had some difficulties. people have questions with antitrust implications that have to do with paypal and access to

getting on the site. >> jeff, the question i would ask is whether you think that there is competition and whether 20 years from now these companies will still be the biggest companies in the world you go back, by the way 20 years ago, the biggest companies were microsoft, which is still on the list after that, none are ge, cisco, intel, walmart, lucent technologies. bp they are all not in the top tenney more. they all have been erased with the exception of microsoft 20 years from now whether these companies are so big today that they will still be so big 20 years from now, or whether, you know, you talk about a facebook you say to yourself who knew about tik tok two years. i don't know if we had tik tok two years ago we would have said what time is it the competitive questions. >> facebook and zuckerberg will

be having a patriotic pitch about raising the chinese threat you're right google similarly. in fact, i think apple especially is taking a look at the huawei as well as lg and samsung. there are global threats out there but the great economist, even though a harvard guy, still tissue having to do with creative destruction yes, new things always come along but some of the ideas that threats weren't companies you raised nokia didn't have a stranglehold motorola was giving them a good run for their money. ibm, 15 years of a long process. >> jeff, it's always good to see you. i hate to apologize. we have to hit a hard break and so much coming up today. i want to thank you for your perspective. >> thank you very much welcome to my life

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tension on the hill. lawmakers at odds over a new stimulus package a look at what's on the line for economy and your investments is straight ahead plus big tech under a bigamy crow scope ceos of apple, amazon, google and facebook all set to testify on the hill about whether they've gotten too big also sec chairman jay clayton on stock sales by executives short term trading and much more the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick who is back with us after a little bit of a much deserved vacation take a look at u.s. equity futures at this hour we're in the green a lot of earnings news coming up dow up about 30 points nasdaq looking to open up at 6 points and s&p 500 up about eight points the aforementioned becky quick becky? >> andrew, thank you negotiations for the next round of virus aid is ramping up in washington part of the focus is extra jobless benefits steve liesman joins us right now with more on this. steve, there are so many things happening today in washington. we're looking at the tech ceos going to be there.

you're looking at the federal reserve he meeting that's coming later. these negotiations that are taking place right now may be the most important in term of the overall economy and what's going to happen. >> reporter: i think you're right. only one of those three big things will put money or take it away from people's pockets that $600 weekly benefit has been a critical program that's helped the economy from declining even more. even agreement it needs to be reduced eventually to get people back to work the incentive effects on labor supply are real but until we get to a point where we progress you don't think about the labor supply effects it's kept up retail sales and reduced the poverty rate a little bit noticed effective ne of this is how it's helped people pay their bills credit card delinquency rates

shoot up with unemployment during this time s&p data through may show 30 day delinquencies rates are down mitch mcconnell yesterday told cnbc's kayla tausche, republicans want to continue the benefit but at a lower rate to get people back to work. >> the way the bill, the previous bill was crafted, five out of six workers are making more staying at home than going back to work and remember all of these folks will get another $1,200 in direct payment >> while it surely has kept some at home and made it harder for employers to hire it's hard to find those effects if preliminary studies have done. recipients would lose their benefits if they are offered a job and don't get return andrew stettner said it's like

playing russian roulette with the economic recovery. you could be shooting yourself in the foot. goldman sachs estimates the extra benefit is from $850 billion into the commission an annual rate or 4% of gdp cutting in half would mean 2% cut to personal income. joe, they got the timing right on the way in and just no playbook on getting the timing right on the way out >> never enough, steve people, some could obviously use the -- 70% won't do it other people maybe so. it's a tough one let's add another voice to the conversation now lisa cook is a professor of economics and international relations at michigan state university steve is also going to be staying with us. and i think professor cook you think we should leave -- it shouldn't be 70%, we should keep it where it is not just for small business but a lot of minority businesses we're in a tough spot to start

always tougher for certain reasons. and the pandemic affects those businesses even more and they definitely, we need to continue at pretty high levels some of the assistance >> that's right. i think that i watched this when i was in the obama administration there was stimulus and then there was pull back and then we had this very, very slow recovery i think we do have a playbook. we know that in the middle of the recession before, there was a thought that maybe we were being too generous, that we were costing taxpayers too much but what we see, the evidence we see that steve just alluded to is that it's all lining up on the side or most of it that i read is lining up on the side that it is not providing a disincentive to work it's buoying the economy that's what we need right now. certainly, if we're not going to do more with respect to ui we

need to do more with direct payments it's not as though these are mutually exclusive there needs to be much more done on all front ppp. on ui. and with respect to the direct payments >> the actual numbers of minority, black and hispanic businesses that are expected to close, there are huge gaps >> that's right. >> just factual gaps do we need to do this differently based on the individual businesses we're talking about? consolidating and accommodation and food surfaces, retail, some of the most affected covid sectors. you just can't do it with one broad brush. >> no, that's right. because there are initial conditions were different. so what congress said originally is that certain businesses were supposed to be targeted and

those were minority businesses now what we saw is that the data weren't collected. so what i am asking, what i asked in the small business hearing in congress last week was that they needed to collect this data and needed to make sure these businesses were target and i also suggested that the smallest businesses were not in the beneficiaries earlier on because they didn't have it. why do we care about those some of the smallest, newest businesses are the ones that bring innovation and we don't want a long term hit to the economy to economic growth, we want to make sure that they have the funding need 53% of restaurants have already closed permanently i mean we can't measure the damage with respect to getting small businesses back in the game once this is all over so we really have to be aggressive with respect to controlling the virus first, and

then with respect to making sure that businesses in general and these other smaller businesses stay afloat. >> steve, you're still with us >> reporter: yeah. i don't think it's a disagreement but put it this way. if i had to choose between the $1,200 check and $600 benefit, i would go with the $600 benefit i'm not sure the professor was kind of making that distinction. the reason is this the $1,200 benefit goes to everybody. the $600 benefit goes to those specifically who don't have work and if i had to choose between the two i don't like the $1,200 benefit for that reason. the other thing is i have some sympathy with the idea that you do want to get the incentives right. i don't think you can be in the economics profession and not agree monetary incentives aren't important. that's why there's this idea out there by schumer -- i don't understand why it's not getting more support and i'll try to get

it there which is to tailor the size of the federal benefit to a state's unemployment rate and that at least is something that might calibrate the amount that people are getting to how dire or how much improved the unemployment rate is in their region >> i think it's a good idea. i would say, i'm thinking of these as being mutually beneficial the additive the evidence i've seen has focused largely on the ui benefits and ppp together, keeping the economy afloat so i think that we want to put, keep our feet on the gas and not put the brakes on right now as a result of that yes, i think targeting unemployment is probably the best thing to do we don't have -- the deadline is july 31st. people have to plan. they will pull back all kind of spending and what i worry about

is wave of bankruptcies, wave of mortgage default, wave of evictions that will happen if ui isn't extended and extended at a generous level so, yes, maybe extended at $400 to $600 weekly, not with the $600 cut that's being discussed right now, $1600 cut that's being discussed right now but to extend it so it stays the same while we figure out the bureaucracy because anything we do to ui will take time. so, yes, we can't do targeting right now. but they waited until the very last moment. so maybe they need to extend it to december and then try to figure out the formula after that >> steve, let me ask you, i don't even understand what you mean when you say targeting it to the unemployment rate in a local area if more people are out of work and you get more money i guess i understand the broader

reasoning for that if you're out of work it affects you very personally and very directly no matter what your neighbors are facing >> it does and i think -- finding the great hole in the argument it is not a perfect system but the why would be this. is that you would reduce the benefit by say $100 for each point or two in a state if the unemployment rate comes down it's an attempt simply to calibrate the incentive of people going back to work with whether the job exists for them to go back to. if, for example, the unemployment rate were 5%, well you would get a lesser benefit if the unemployment rate was 10%. it's not perfect right for that individual person but overall this incentive to go find work rather than this idea that some of these benefits do, indeed, pay people much more to stay home although there's a whole lot of reasons why they would stay home. there's child care as well as

medical benefits >> there's another reason to keep the direct payment going because of your question another reason to keep the direct payment going no system is going to be perfect. what we need to make sure of is that households feel like they can make decisions this virus is not under control. and what we see is that it's getting out of control people are the economy these two aren't -- they aren't at odds with one another people are the economy if we're not taking care of people we're not taking care of the economy. >> very good, professor. lisa cook, michigan state university and steve liesman. we've called you professor but i just -- professor cook you're a professor. you're not a professor, make that clear, steve. >> i don't call myself one, joe. andrew calls me one. you call me one. i do-not-call myself a professor. >> very good making that clear. thank you.

we'll see you again, professor cook >> thank you >> i just want to say i remember when steve used to have a white board or chalkboard and that's, you know, very professorial in my mind. >> with streaming booming because of the pandemic, akami technology has been a huge winner the stock is up 30%. we'll speak to the company's ceo after the break. in the meantime want to get a check on the markets "squawk" returns right after this this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. kristine leahy

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some investors of tick kok's parent company are looking to take over the social media app and valuing it at $50 billion. general atlantic were early investors in that he company they want to take it back to effectively make it a u.s. american company in part because of so many privacy concerns around its chinese ownership meanwhile $50 billion valuation you think about it, you have twitter not even at $30 billion valuation, i think snap right now is just over 30, 33 billion and tik tok now would be at 50 and they say there's even more

acquisition interest it's an interesting development on a morning when mark zuckerberg will be testifying in front of congress about competition in the marketplace and clearly as we were just mentioning in the last hour, tik tok didn't even exist, i don't think, 24, 36 months ago so i'm sure he will be pointing often to that company and others >> a billion dollars >> in terms of how they think of the marketplace. >> $50 billion but 2021 expected, 6 billion that's called -- that's called growth you haven't made an actual video, have you sorkin, of tik t tok? >> i haven't made. i lurked by the way i deleted it from my phone the day that amazon, if you remember briefly there was a three hour window where they told their employees to delete it i deleted it too because i

thought to myself maybe there's something to this. i don't know whether there's something to it or not but that's the reason that these companies want to make it a u.s. company and return control back to the united states so that people don't have these kind of concerns but no, i have not done -- i was thinking of lips is sync rather than a dance >> it's up to you. >> twerking. >> what's as long as can it be, do you know what's the upper end of the length? any special effects you can put in >> most are way shorter than that >> do a "squawk" dance >> i don't like dancing. >> or lip syncing. what about a lip sync? >> i don't know. >> i could lip sync you, joe

i'm not talking about a song there's a woman that, she's a comedian who lip syncs trump >> i've seen that. i'm familiar with this then. remember when instagram got bought what are they paying for this for. now it's like -- seems like a lot. nothing is out of the ordinary any more all right, becky >> in the meantime internet traffic superas we all know and akamai is cashing in the cloud technology company is benefiting from the work from home trends that we've seen reporting an increase in quarterly revenue and in profit. akamai's business access is the back bone of the internet focused on security, web performance, streaming and web development across a number of different industries joining us now to talk about it is akamai's ceo, frank thomson leighton thanks for being here. >> thank you

nice to be here. >> i was thinking about it last night and, you know, you were an early believer in the massacre net. you were at m.i.t. back in 1997. you left m.i.t. to found akamai and bring it out of the incubator. but i can't imagine you at that time would be thinking what we're doing today, working from home and what the internet is able to sustain. that's this surprised even you >> the vision is the internet would become the back bone of our lives and that's in the process happening. i don't think we envisioned all the applications that we have today and social networking. you know we did envision explosion in traffic, that commerce would be online and security would be a major challenge. and that has proved out to be true >> what have you seen just in terms of traffic on the internet and then demand for safety products for making sure you are

providing security have there been more scams and attacks during this entire lockdown period too? >> yes you know, traffic advanced about a year we had about a year's worth of growth overnightbecause of the pandemic and the sad thing is that the attacks have advanced several years overnight. just in q2 alone, the number of employee accesses to sites with malware jumped by 5x the number of log ins, malicious log ins to banks and commerce sites where somebody is trying to take over your account jumped 4x year-over-year. the size and scale of attacks is now unprecedented. some we're seeing the threat actors trying to take advantage of the distraction or vulnerabilities caused by the pandemic especially with enter prizes having a lot of employees working remotely that's a huge area for us to

help enterprises work against that >> andrew. >> tom, we have these big hearings today, everybody is concerned about competition out there. i'm curious, i would argue you've been a beneficiary but maybe you have a different view. do you feel your business has been stifled in anyway by the alphabets of the world which are now competing with you in terms of their servers, aws at amazon and apple across the board are any of those companies doing damage to your business in an unfairway right now? >> we've competed with some of those companies for well over a decade it's always a little harder when you compete giant companies. now those giant companies are also large customers and partners of mine at the end of the day we stay ahead and thrive by being more innovative, moving for quickly and providing great customer service. so it's a complicated eco

system the government does have a role to keep an eye on the world's giants and powerful companies. but akamai is thriving, as you can see even though we compete with some of those companies >> do you think that they've done anything from an anti-competitive perspective that would rise to the level that the government should be watching at least in terms of what you've seen >> the government does have a role to watch. and, you know, when there's companies with that amount of power, you know, it is important to make sure that, that power is being exercised in a fair way and to the benefit of the consumer it is hard competing against those companies. as i said, you got to do it by being more innovative and moving faster and reallyfocusing on the customer >> tom, just back to what you've seen and the bad actors that have been out there, you say

there's been this explosive jump, several years forward in term of the attacks happening. are the attackers the same or are we dealing with different players than we have been pre-pandemic >> high level the attackers are the same organized crime is huge. you got major nation states. you got political activism or groups with a particular agenda. the capability to launch attacks is easily available and well understood it's a heck of a lot easier to attack than it is to defend. the attackers are creative and developing new attacks for example, a lot of the third-party content that's on every website now, the attackers have figured out how to get malware in that. just by going to a reputable brows browser you can end up giving up your personal information. we launched a new service to flag that and block it that's really very important and

timely >> that's good to know tom, we'll have you back love to hear more about that thank you for your time today. good to see you. >> thank you >> coming up a big mover in the dow and an economic indicator set to report. boeing bring in the numbers as soon as they hit the wire. cfo of general motors joins us those numbers expected shortly "squawk box" coming right back >> announcer: time now for today's aflac trivia question. on this day in 1958, congress passed legislation establishing what agency? the answer when cnbc "squawk box"onnu cties this was an unexpected bill not covered by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks.

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now the answer to today's aflac trivia question. on this day in 1958, congress passed legislation establishing what agency? the answer, nasa cool still to come on "squawk box" this morning quarterly results from boeing and from general motors, just minutes away. you can look for comments on boeing 737 max production. faa timeline and delivery schedule and then for gm the focus will be on the shutdown impact production snap back and second half outlook. we'll get the results, stock analysis right after this break. in the meantime let's check out the futures. dow futures right now up by 39

s&p futures up by seven and nadler which was down by 1.25% 'lbemoin 66 points this rng. wel right back.

welcome back to "squawk box" boeing's earnings quarterly earnings just out. want to get to phil lebeau who has those numbers. >> reporter: a wider than expected loss and big mess and revenue. each ps, a loss of $4.79 administrate was expecting a loss of $2.54. part of that is because of the problems with covid-19 the delivery of aircraft as well as some charges we'll talk about. revenue miss of 11.8 billion

estimate was for 13.16 billion free cash flow negative 5.6 billion. the cash balance currently stands or stood at the end of the quarter at 32.4 billion. there's six charges. one of which the street may not have been expecting. we won't go through all of them. they total $2.93 billion one charge in there that may surprise the street is the fact that the services division, asset, severance, adjustment there is $923 million. that might explain wider than expected loss in terms of earnings per share production rates are changing on a number of aircraft 737 max will be slower and a gradual ramp up. it will be 31 per month starting in 2022, previously the expectation was 31 per month sometime in 2021 777x as we reported last week are slowing down or pushing out where the 777x when delivery

starts as well as production first delivery expected 2022 production in 2021 will be two a month instead of three per month. 787 goes down to six per month starting in 2021 currently they are at 10 per month. then finally there's no change on the 747, though we should point out there are a number of people who are speculating that they are building only half of 747 a month, six per year. it wouldn't be a surprise if we see some kind of an adjustment there. we'll be talking with dave calhoun. don't miss this interview exclusively coming up on "squawk on the street" a wider than expected loss of $4.79 per share for boeing in the second quarter very good. results from gm are out as well. coming in fast and furious let's get reaction to those

results. joining us is tim lesko. he recently sold his boeing stake. phil lebeau is sticking around at first blush, tim, it's difficult environment for everyone, but let me see you're not flying, you might be driving, and the average age of the car is pretty old. some of these automakers ought to be able to make a little bit of hay with the sunshine or no >> well certainly when you have auto production shutdown that's going begin to flow through the system, lower inventories. you've seen in at least the northeast significant increase in driving miles as people start to come out of their covid cocoon and not flying, not going to hotels. they are seeking vacations that they can drive to. leisure travel is starting to increase what that means for commuting travel and future car ownership remains to be seen >> phil, you want to get in and

just ask some specifics about gm or we can talk boeing too. >> reporter: sure we have news coming from boeing in a little bit. but when it comes to general motors it centers around the question of you saw the shutdown in product and we've seen a bit of a come back in terms of demand for deliveries to dealerships. my question is, is this it does it plateau for the remainder of this year or will it increase? >> i don't expect we expect to see normalize earnings again until mid-2021 when you have 64,000 new coronavirus cases a day what the end of this is but the shutdown really makes us focus on their ability to survive the shunned not how many cars they sell this month or next month but really what are normalized earnings and how quickly we can get there >> the other big story and we

will talk a lot about -- why did you sell your boeing shares, tim? >> we've been a long term boeing own. we owned it foreclose to a decade we rode through the 737 max crisis the cover crisis hitting boeing changes the trajectory of earnings probably was on a path to $20 a share in earning which made that $400 price seem reasonable at the time now that you see these production decreases, 31 a month on the 737 max, even more importantly maybe six a month on the dreamliner really just puts that path much further into the future it's still a duopoly, tremendous barriers to enter the commercial aviation business but we've pushed out when we'll see those earnings come back to boeing >> we got a little bit of news when it comes to boeing. a note from the ceo dave calhoun to boeing employees. essentially recapping all of the news that i just reported

regarding the second quarter earnings results and the outlook but as i mentioned there has been some speculation that boeing may finally end the 747 really the plane that has defined boeing over the last 50 years. and he says in here that they will not be changing production rate, that they do plan to complete production in 2022. there you haste. 747, really the plane that coined the term jumbo jet, that will end in 2022 and that's going to be a piece of news. not a surprise but certainly whenever you have that type of a product that really revolutionized commercial air travel and the fact that they are officially ending it, that's going to be note worth i today >> just in time for some supersonic concord thing to come back not as many people, but two hours to london. some day we'll see. >> you know, tim, you watch, it's not gm and that's not your

thing but you watched tesla, right? you see the notion about what electrici electricifi electricification will mean for the future is gm ready for that as far as the technology goes making any headway there at all? doesn't look like in the market cap, does it >> well, certainly not reflect in the market cap. it's hard to call tesla a car company when it's trading at a multiple of being the future solar company. but tesla is going to probably destroy some of the lesser brands in the auto business that are unable to keep up. gm went through a cathartic change during the financial charisma and came out a leaner, better run company it's our estimate it doesn't mean tesla isn't going to do

dpra great things means they will take out general motors. we don't expect that it deserves the kind of multiple that tesla might deserve due to the product line that tesla has. gm will still be relevant. gm will still participate in the electrification of cars. interestingly you made note all the electric car companies are coming out with pickup trucks because that's where you make money and that's where gm makes money. >> yeah. we saw the average age of a car, you were talking about that yesterday. why isn't that -- why can't gm be a beneficiary of that, phil, or is it going to be, tim or phil >> reporter: sure, go ahead tim. >> gm is a tremendous beneficiary of that. you have two different tracks. electrification of cars and automation of cars

they have to play on two tracks in order to be relevant five, seven, ten years down the road we're really looking in the three to five year range even if tesla tripled production of its automobiles and got to 1.2 million vehicles, you still aren't going displace gm's market share in this environment. so as gmbegins to ramp up the electric cars it makes as bmw deans audi does the whole world is moving towards electrification. not just us. >> do i need to give you phil's email? >> you know, as a long term investor what we want to know is survivability of a health care crisis to get closer to your normal run rate. it's not about how many cars you sold in june it's about what your cash position was going into this and your capacity to borrow money at historically cheap rates. >> all right i'm going to takea gm car whic

is a sterile tube on a 900 mile trip i'll let you know how that goes, tim. >> joe, this is called, people seeing it as we're getting it, one other piece of news regarding boeing shares of boeing in dave calhoun's note to employees, after talking about the results and then talking about the outlook, he writes that because of the production cuts that they are planning, and the lower demand for commercial airplanes and commercial services, boeing will further assess the size of its workforce. remember, they've already -- they are in the process of cutting about 12,000 jobs. don't be surprised if we see more cuts coming that's essentially what he's saying in that note saying that they are assessing the size of the workforce which is code for we may have to get even leaner good all right. >> just real quickly, phil

i don't mean to put you on-the-spot. do you know boeing's work force overall, if they are talking about laying off 12,000 people now and looking at additional worker cuts? >> i think they have about 160,000. i think it's close to 10% are going to be laid off not just 12,000. the 12,000 is primarily production they are in the process i think of eliminating around 10% of the company. this is back of the envelope math here. how much more they would have to adjust or reduce and become even leaner, there's no way of knowing. we'll be talking with dave calhoun. you don't want to miss that interview. that's coming up at 9:00 on "squawk on the street" >> thanks phil and tim becky? coming up right here on "squawk," sec chair jay clayton is our special guest we'll speak to him in just a few minutes. you've been watching the futures this morning after a down day yesterday you

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welcome back to "squawk box" check out shares of general electric rising after reporting results. company losing 15 cents per share for the second quarter, wider than the 10 cent loss analysts were expecting. revenue was better than expected still to come this morning sec chairman jay clayton on short term trading on nude sales by executives of biotech companies. that interview just minutes

away later senate majority leader mitch mcconnell says he will not bring up coronavirus bill that doesn't include liability protections. we'll get reaction and comments from senator rob portman "squawk box" will be right back. at leaf blowers. d you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

quick check on boeing and gm after both companies reported results. there we go. we can see up pretty nicely on gm, 3.5% and boeing gaining about 1.5%.

andrew there's a new thing. ebit some people are raising questions how companies are counting for coronavirus and related to compensation. joining us now is sec chairman jay clayton. we're in the middle of earnings season and we appreciate you joining us but this is an issue because one of the things you're seeing companies say is this covid thing, you know, see no evil, hear no evil, don't pay attention. do you think that's the right message for investors? >> andrew, thanks for having me back on. and in the earnings season to talk about this. look, letmesaythi me say this

company reporting first quarter results and second quarter results we've seen people doing a good job talking about the stress that their companies are facing where they stand currently and the outlook. as a general answer to your question, do we expect people to say don't pay any attention where we stand today no, we don't we expect public companies to tell the market where they do stand today. that's particularly important. so, let me just be clear on that >> let me ask you because it relates, you're looking at took prices that moved and moved higher relates to compensation to some degree i want to get your take on some of the more outsize compensation plans. one thing you saw amidst this covid pandemic companies and ceos saying they will take less money, less in salary but one thing that hasn't changed in some cases they loaded up on

stock during this period this is something you saw happen in the post-financial crisis period now more than ten he years ago. what do you make of that phenomenon >> andrew, there's a lot of going on here, let's break that down we as a society, we like equity compensation and it aligns the interest of management with tint of shareholders. when boards of director accept that compensation they not only need to think about amount and alignment in that way but also at what time are people able to liquidate and sake some of thta that off the table what we are in here is a period of uncertainty and we like to see when people put compensation packages in place an explanation not just of how it works but how the board

assessed that that compensation package was, indeed, aligning interests. >> so, let me take one example, which is clearly the one that's been in the news you've seen elon musk become one of the wealthiest people in the world in large part because of a remarkable compensation plan that depending on your perspective you could argue got more skin in the game than anybody and he's not being paid quote-unquote a salary but boy has he made a lot of money that people didn't expect on the other side people say this is a gross injustice. >> andrew, you know i'm not going to comment on any particular compensation plan or ceo. but what investors should understand is how long is an alignment of interest in place when someone receives a large grant or a performance base compensation, is that something that they can liquidate in six

months or six years? and are they going to be staying aligned with shareholders over the long term? that's just one of many questions that, you know, boards generally, well functioning boards ask themselves and that they disclose to the public. >> jay, i know you don't like to talk about specific companies or people but the other thing i want to ask and it's in relation to elon musk it looks like he's trying to antagonize you he puts out this tweet, i don't know if you saw it i'm sure you matthew have. he writes sec three letter acronym, middle word is elon i'll leave it to the audience to figure out what that is. how often do you have ceos publicly antagonizing your agency >> well, andrew, look, we have public markets we're public servants. you accept the good and the bad

of the public sphere when you do these jobs let's put it this way. i have nothing to say about it >> all right let me ask you a different question unrelated to elon musk but relighted to moderna but we can put it in more general terms if it allows you to answer the question, we had the ceo of moderna on earlier this week and he sold some stock, said it was part of one of theselans said the company had a policy that wouldn't allow him to change it. now we also noticed that he may have changed it in the middle. is there anything that prevents them from not changing their plan once it's in place just to be clear because there's a lot of questions about insider selling especially among some of these biotech companies that's involved with vaccines right now. >> let's take a step back. i love you always try to get me to comment on specific companies but i'm not going to do that

i will comment on executives selling stock, plans and the like this is something where good corporate hygiene is essential okay you can't put a plan in place unless you the company and the executives are on a level information playing field with the market just like you can't sell stock as an insider unless you're on a level playing field with the market so you put a 10 b 51 plan in place. let's go back to the point i made previously which is when a board looks at these they should look at how much people are taking off the table and think about that and that should be disclosed now when you have one in place, generally you leave it in place, that's the whole point here, you made the decision. it's on auto pilot, everyone knows. have people in the past taken

comfort that they can cancel those plans, yes they have and they do. it's good corporate hygiene, i believe. if you cancel such a plan you don't put it back in place for some time. otherwise it looks like you're actually sort of affecting trading. but do people cancel plans is it a practice it is. >> then final question for you this morning which is spacs. blank check companies. how much is a spac an indictment of the ipo process today and how difficult it is for companies or how uncomfortable they feel about going public in this environment? >> you know, i would not characterize spacs as an indictment of the ipo process. we see plenty of ipos and the price discovery process that goes along with ipos is fairly well tried and tested and, you know, i don't think it's an

indictment it is an alternative for raising capital and then finding a particular target. but, andrew, what i want to say here, these are complicated instruments. there are incentives that are different from the incentives that are in place for management during an ipo. investors, particularly our retail investors they need to under this there is often a substantial compensation package in the form of equity for the spac sponsor also when the spac does its acquisition there are incentives that may not be aligned with shareholders you need to look closely at your retail investor what the incentives are not saying they are good or bad but you need to understand the different incentives in a spac >> okay. chairman jay clayton appreciate you joining us as always this morning and helping us through all of these various issues. thank you. >> thank you, andrew

>> still to come this morning the ceos of companies representing 16% of the s&p 500's market cap are testifying before congress today. we'll have the latest out of washington later don't miss our first on cc nbinterview with cfo of general motors "squawk box" will be right back.

good morning today is the day washington the center of the business universe. heads of tech companies getting ready to testify before congress at the same time members of congress are racing against the clock to approve another stimulus package general motors posting a much

smaller loss during a period when its factories were closed we'll hear from gm's cfo kodak's moment stock of the american photography tripling in value yesterday. announced the government is helping it get into the pharmaceutical business. we'll talk to kodak ceo live right here on "squawk box" as the final hour of "squawk" begins right now good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. futures equity futures at this hour, as you can see, turned mostly green and once again the nasdaq out performing a little big tech goings on today

goings on. is that like attorneys general goings on. i don't know anyway a lot going on. >> it's goings >> a lot going on capitol hill today. should be interesting. i like some of the stuff sonnenfield was saying then he said compared who they are talking to so be ready for any type of questions that, you know, no matter how -- we've seen that before i can remember the financial crisis hearings. >> this is going be a show >> remember blankfein was saying this does not execute. there's no answer to the question you just asked me, senator. anyway -- >> generally it's a better idea not to point those things out. >> yeah. probably not >> when you're being -- when you're facing an inquisition, i should say >> good word for it.

>> let's get right to the event that all of wall street will be watching today that's the congressional hearings that will feature testimony and questioning of ceos of facebook, alphabet, google and amazon. first time jeff bezos has ever appeared before congress and that is what makes this particularly juicy he is expected to defend his company's market dominance amazon has seen growth going public back in 1997 at just $18 a share and soaring to around $3,000 today we take a look at amazon strategy at the hearing and what's at stake for the company. good morning >> reporter: good morning, becky. bezos will begin by telling the committee, his adoption, how he left a stable job for a seattle garage creating what barons would call amazon dot bomb to

$1.5 trillion tech giant that many lawmakers believe has grown too large and too powerful bezos laid out its obsessive customer focus 80% of americans have a favorable impression of amazon overall. that's key, guys lawmakers today need to show that amazon stifles competition and bad consumers. consumers love amazon. there's 150 million subscribers. at the same time third-party merchants are becoming more vocal saying amazon uses their data to compete against them and amazon limits users choices. counterfeits and price gauging are still problems for the platform as becky said this, is he bezos first appearance before congress out of the four ceos we'll hear from today he's the one that led his company the longest. he's well prepared

back to you guys >> okay. deidre, thank you. for more on what we can expect, i want to bring into the conversation, the vice chairman of the judiciary committee antitrust subcommittee what are you looking for and looking to hear and one of the reasons i'm asking you that way is historically you would have looked at this as a straight antitrust situation and in a very specific and narrow way yet there's an expectation that a lot of the conversation may be about lots of other issues, encryption, privacy, financial power. how do those get incorporated into this? >> well, it's good to be with you. i think the hearing will be very focused on the antitrust investigation that this committee has been engaged in for the better part of the last two years. twrop your prior conversation many of us on the committee are attorneys, myself included

some of us regulatory attorneys like myself so i suspect the questions you'll hear for these ceos will be serious, thoughtful, meaningful, productive questions the issues that you mentioned whether it's disinformation on our social media platforms or, obviously, the threat to our democracy posed by some of these larger platforms those are all in some respects collateral activities so again the focus on our side of the aisle will be on wasn't trust nature of the inquiry that we've been engaged in. at the end of the day those other issues is not to suggest they are not important but they all flow from this core question of whether or not these companies have amassed a monopoly power and using it as a shield, in effect, to avoid adopting some practices that would prevent some of those collateral consequences from emerging >> congress mapp, traditionally one of the classic elements of

an antitrust case is that monopoly power would be increasing prices for consumers. and at least visibly to most consumers today whether it's an amazon or a google or a facebook or an apple, it appears, i think, from the outside, as if they've lowered prices, that they created more competition, they created lots of businesses and a platform for other businesses to thrive make the case to me and part of it is maybe even adjusting or reframing how we look at antitrust, make the case to me how you think that some of these companies are hurting the consumer today >> well, look, i haven't reached a final conclusion nor do i think my colleagues on the committee have the investigation has been comprehensive. 1.3 million documents produced 93 requests for information that have been propounded by the committee. many of those have been responded toby these companies i do think you've identified the

central challenge for the committee in terms of how we view the sherman antitrust laws conventionally and as you said with respect to these companies that are very unique from a pricing point of view. that being said clearly the merchants and small businesses across our country including many back home in colorado, in my congressional district do have a case to make that these companies have been engaged in anti-competitive practices, leveraging, misusing data that they've acquired from these small businesses in the marketplace to in effect clone or replicate those very same products vertical integration of some of these companies, you mentioned amazon, a great example. obviously conclude to be problematic in the broader sense for our economy in terms ever putting a lot of small mom and pop merchants and small businesses out of business i think that will be a large thrust of today's hearing. >> congressman, related to that and maybe we can put it in the bricks and mortar world because it may make it more jundsable

from a platform perspective. the "wall street journal" has done some great report on this how amazon is a platform and third parties and small business have thrived on that platform but at the same time amazon has in certain cases us appears copied or created white label versions of the same products. that's something that's happened for decades if not longer in the bricks and more tore world so walmart will see batteries are selling very well from energizer, and all of a sudden walmart decides they will make their own batteries. how do you look at this differently or do you? >> well, first i would say walmart has a host of competitors in the brick-and-mortar sense target and some of the other retailers. to the extent that practice you identified could be described as prevalent it perhaps, which i'm not necessarily agreeing with that premise to the extent that's the case again there's a fire wall so to speak because there's ample competition in

that context however, with respect to the companies that will be appearing today or the ceos, rather, it's very clear, very few if any of these companies have real competitors in the traditional sense. so i think that is part of what we will be kind of gasolinleani. the description, the character san diego of the way in which amazon, for example, has, you know, leveraged their ability to invest capital or make overtoyoe to invest capital to them take those same strategies, ideas and concepts and replicate them for their own use is problematic i suspect that the ceos that you mentioned are going to have to answer some questions about that topic among many others. >> finally, congressman, would you look back at previous mergers that were approved by the government prior and consider undoingthem

there's a lot of looking back, for example instagram transaction that facebook bought at the time people thought who knew whether instagram would work or not and become the success it has yet there's some internal documents that seem to suggest mark zuckerberg and others considered it competition and tactically you're not supposed to buy somebody to try to put them out of business. how do you think about that and how do you think about that in an instance where the government already approved something in the past >> well, i don't want to -- it's a very great point ate salient point. i don't want to get in front of the questions that will be asked. suffice this particular area will be an area of conversation for our committee. look, there are many of us in congress who have criticized the ftc for decisions or perhaps, you know, the inability for the ftc to act in certain instance with respect to acquisitions in the past regulators have the ability to claw back any number of

transactions, that's their decision to make our focus as a committee to highlight for american people why this matters given the fact that these companies have such a huge impact on our daily lives and daily lives of american workers, businesses and consumers. and at the end of the day make some recommendations about whether or not these law need to be changed the antitrust laws so regulateors in the future perhaps act with a little bit more urgency >> we appreciate your time and perspective this morning we'll be looking forward to seeing all that's said today and we do hope you come on back and do a little post mortem together >> congress mapp, i don't know whether they told you. just at the end of the interview, as a fellow buff i want to ask the -- there was some rebuilding going on, some good things happening, right were you in a dorm -- just wondering what dorm were you in.

>> great to talk to a fellow buff baker hall >> baker >> actually -- >> go ahead. >> i was going say actually we held a field hearing antitrust subcommittee at the university of colorado law school which is my alma mater earlier this year. practices a productive hearing before the pandemic commenced. it's been a tough year for everybody for our country and certainly for my district but we'll bounce back. i have no doubt. >> there was no pearl street mall if that tells you anything. i was living next to baker baker was the buff football team was in baker not when you were there, i guess. right? >> nope. no they changed that. >> okay. all right. tough place to go to school because you're always looking at the flat irons i don't want to go to school i want to go up there. thanks, congressman. >> most beautiful college campus in the country >> nothing close i don't think

thanks congressman coming up, the stimulus. temporary benefits for millions of americans are set to run out at the end of the week senator rob portman, is there a deal to be had with democrats. as we head to break check out shares of boeing second quarter results coming out. coming out below expectations and announced a slow down for the 737 max, 777x and 787. don't expect an interview with dave calhoun at 9:00 a.m. eastern on "ua othsqwkn e street". stay tune you're watching "squawk box" on cnbc you say the customer's make their own rules.

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lawmakers in washington debating a new round of economic stimulus before some key benefits for americans expire at the end of the week. a new cnbc change research survey asked voters in battleground states what they think of the economic relief policies eamon javers joins us now. colgate? >> i'm not a buff but i did go the gate >> cramer is talking about why is colgate doing so well well why wouldn't it i saw that anyway go ahead. >> that's right. that's right gorgeous campus. i'll put in a plug look focus on what washington is doing today here in d.c. it's this idea of putting together the relief program. and we went out and asked our respondents in our poll what relief measures do they support. what you get back is unbelievable overwhelming support for all of these relief

measures across the board. remember this poll is of likely voters in swing states people we think will show up in the states that matter and it's overwhelming support for all of these elements for additional $1,200 in direct payment 80% of people support that for funding for testing. 77% support that for expanded broadband access 76% support that aid for state and local governments. the lowest one is 62% for extending that $600 per week bonus unemployment insurance payment. that's one that's the lowest one on our list but still overwhelmingly supported by the voters at 62%. that's why you saw president trump suggesting he's willing to compromise there saying we'll work on this with congress and we'll help people out. even this measure that is central to mitch mcconnell, this idea of liability buffer for companies that are dealing with

covid lawsuits, that one doesn't poll very well either. take a look at support 32% support liability restrictions for companies 58%, though oppose that. that's an overwhelming number there. deeply under water for mitch mcconnell on his signature proposal in this overall relief package. that suggests to you, joe, democrats have some momentum here in pushing for all of they elements ultimately the politics of this is really tricky going into an election all of this is money directly into the economy in many cases money directly into voters pockets. that's extremely popular out there in the states particularly in the swing states as this poll shows. very difficult for members of congress to vote against that although we expect a lot of republicans will do that because of their concerns about the deficit, joe back over to you >> yep we had brian sullivan on yesterday. a million million i think. isn't it let's see. billions of thousands. we need scientific notation.

we say it so easily. watch. trillion ivt easy >> right >> why do a trillion when you can do 2 trillion. see how easy >> in washington we stopped talking about billions and talking about trillions and now whatever the next thing up is. is it a quadrillion. >> thank you becky? >> what comes after that quintillion. >> then hundred. all right. joining us right now to talk about what's in the gop's latest stimulus proposal and what it will take to get a deal done is ohio senator rob portman senator, thank you for being here you are somebody, who i think is a voice of reason and who already comes straight down the middle with these things

this is a big battle both side are digging in at this point. you heard what eamon javers said about what swing voters, likely voters in swing states are saying what do you think right now? where would you feel comfortable and do you stand with mitch mcconnell on this? >> i think the mitch mcconnell proposal is a good starting point, becky i want has a trillion dollars of new spending which as joe just ka indicated is an incredible amount of money. it addresses the key issues. addresses our health care situation. more money for research, antivir antiviral vaccines, more money for schools. so schools can re-open safely. money for employment one thing i like about it, it has tax incentives for people to hire folks because right now that's important to get people back to work and get them back to work safely and a tax incentive to create a safe workplace if you're spending money on things like plexiglas shields or

more ppe or more testing or hand sanitizers you can get a tax credit for that. on the unemployment insurance front, the 70% of wages is something that a lot of folks would appreciate includinga lo of people who were just polled if they were told if you lose your job you can have 70% wage replacement. that's generous. more generous than what states provide currently. i supported in the past this return to work bonus if you have the number that's so high that you're making significantly more in unemployment insurance than you are at work then you need a return to work bonus also. if you have the 70% of replacement of wages, i think that's a reasonable place to start. >> in terms of standing with mitch mcconnell, do you agree with him with what he said yesterday about look this will not happen unless you have the business liability issue taken away that he will not bring this bill to the floor, none of this will

happen unless you issue immunity from corporate responsibility or liability when it comes to covid. >> listen, he's been very clear about that from start and of course we hear about that back home a lot we don't hear it just from businesses we hear it from cool teachers, health care professionals. we hear it certainly from people who are running restaurants who are saying if someone gets sick, you know, and it may come from anywhere if i get a lawsuit this will put me over the top and bankrupt me. you have to have something here. i think democrats acknowledge something needs here the question is the details. how does it work how does it work with state laws already in effect. i think it's a misnomer to say it's just about big businesses it's more about small business and all these other entities including nonprofits >> senator, again, though, i think a lot of it comes in the wording, as you just alluded to.

is there a way to do this to say as long as businesses are following the rules, doing the best they can be, given the guidance they wouldn't be held liable but at the same time not have as necessary a high threshold or bar as set in the current language that says unless they can prove you intentionally tried to give somebody coronavirus or covid you won't be held responsible. maybe that's where the compromise comes down? >> yeah. i think you're right following the cdc guidelines should apply to that as well as the tax revisions. we want people to return to work we want the home return to work safely and there's way to got. that's why i like the provisions in this legislation that incentivize a safe workplace in providing a credit if you make your workplace safer. that is to be part of it and part of the compromise to get to something that makes sense and covid-19 related, of course. >> when you talk to the leaders

in either party, they are going lay out their case they are going say here's what we have, we won negotiate this, is our stance on this. they won't negotiate on the air waves. what do you hear when you talk to your colleagues on both sides of the aisle how close is this to getting done >> i think there's a lot more common ground than would appear from the public comments that have been made by both sides and that's because mitch mcconnell put out a very generous package of a trillion dollars and has pretty much every issue covered that's in the democrat package just not as much money and doesn't have the extraneous matters. the $600 additional federal benefit on top of the state benefit for unemployment insurance, there's more ground than you might imagine because democrats as well as republicans are hearing from back home and what they are hearing is from small businesses, from mid-size

businesses, large businesses, nonprofits it's tough to get people to come back to work and it's understandable according to the university of chicago study which no one has disputed, 68% of the people who are on ui today are making more in unemployment insurance than they are if they go back to work. that creates a disincentive. i do think there's a way to deal with that. as i said there should be some understanding there needs wage replacement at the federal level on top of the state level because unemployment is high and some businesses that cannot re-open safely but it needs one where you're not discouraging work because it's good for everyone to get folks back to work obviously including workers where they get their health care, retirement, training to stay up to speed we don't want long term unemployment here. so i think it makes a lot of sense. certainly makes sense to taxpayer less unemployment insurance being paid shift people over to payrolls instead and business, particularly small businesses struggling to find people now.

that's one where there's common ground in terms of identifying the problem. the question is what's the solution continuing the $600 is obviously not a practical solution if you want to get people back to work safely i think when you ask members of congress on both sides of the aisle they want to get people back to work safely. they just want to be sure they get the best deal possible this week in think we can end up with that if we're trying to get to a solution >> what is the solution on this? is it cutting it to $200 a week as been proposed by some republicans or is it something that looks a little more akin to the plan you told us about months ago which is to pay people to go back to work essentially getting a bonus to do that or has that time come and gone >> best solution is come up with a number that makes sense of what percentage of your previous wages should be covered by unemployment in the states it's 50% number. some have less some have more

no one has up to 70% wage replacement. that's what the mitch mcconnell proposal says. you get 70% of replacements. if democrats are is going to insist on 600 then return to work bonus has to be put in place. people can take $450 out of the 600 back to work during six week period otherwise you're encouraging more unemployment and that's not what anybody wants my hope is we can go with the more sensible approach which is to say okay there should be a federal supplement, should be significant and it is the mitch mcconnell proposal you know the past couple of weeks i've been around the state of ohio and talking to businesses and small businesses. you see employers who are looking for hundreds sometimes over 1,000 employees forward motor company is showing 25% absebe absenteeism on this.

they can't get people back to work and they need the workers right now. this is a problem that's across the board. anybody who is back home listening to their constituents and hearing it, again this is not good for workers, not good for small businesses tore economy. >> i hear you, but where would you place the odds in terms of what this -- what this will wind up being will this be $600 continues every week and you gate bonus forgoing back to work or is this going to be you cut that number to 70% or 75% or 80% you cut that number and slice it and dice it in some other way. i think it's very important for the economy overall, important for the market to know these things i would love to hear your sense of which way you think this will wind up. what's your best guess >> well, becky, first of all, we have to do something and we have to do it by friday if we do nothing because we end

up in a partisan gridlock and both sides go to their corners the people who get hurt are the workers. the $600 will end. there's a cliff. we need to do something before friday frankly i think, you know, democrats are looking at the polling, probably and saying we can try to shift the blame that's not going to happen because there's a credible proposal out there saying we as republicans ready to provide 70% of someone's previous wages in their unemployment insurance there may be a transition period for states to get up to speed on that and during that time period where maybe there's the opportunity to have a compromise in terp of the number. the $200 is roughly 70% on average but it affects individuals differently and states differently and that's why 70% makes sense ultimately because that's a customerized approach that's a compromise. look, i just feel very strongly we got to resolve this on friday we can't allow a period where there's no unemployment insurance going out to people.

$600 to zero is not a good option but there are, again, practical solutions here, and if people are going to stand in the way of that, you know, then they got to be held accountable. >> senator port mapman, thank yu always appreciate your time. okay coming up, when we return the reinvention of an american icon, the executive chairman of eastman kodak will join us to talk about the news that sent his stock up more than 200% yesterday. the camera pioneer will get into pharmaceutical witthh e help of the u.s. continenza

. still to come this morning a first on "squawk box" interview with the cfo of general motors coming up company's second quarter results. kodak moment the ceo will join us to talk about a new business line, pharmaceuticals. it's all hide when box returns save hundreds on your wireless bill

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welcome back to "squawk box" general motors posted mixed second quarter results justin last hour. i want to get to phil lebeau who joins us now with a special guest. >> reporter: let's bring in dhivya suryadevara, general motors chief financial officer i just heard your analysis essentially of the results on the conference call with reporters. let's talk about where you guys stand in terms of liquidity and your believe that even though you burned through $8 billion in the second quarter you guys will be able to start repaying some of your desbt in the second hal of this year, is that correct? >> that's correct. our burn is about 9 billion with a billion in operating burn and 8 billion of working capital online and really the second part, starts to rewind when your activity picks back up and that's where our expectation for the second half.

we do expect to generate 7 to 9 billion in the second half obviously stable economic macro backdrop and economic recovery as we're seeing today. >> is that assumption a safe assumption given what we're seeing with covid-19 levels particularly in the sun belt states >> clearly a fluid situation we're watching that very closely. so far we've seen the auto demand has been recovering from march to april tomato june and now july and we have from a production standpoint putting extensive safety measures in place which allows us to operate our facilities and truck plants. so as you point us it's a fluid situation but it's wonderful watching and we're preparing for several contingent ontingencies >> you got several plants, the

one outside of louisville. you can maintain three shifts. you had some issues with covid-19 how confident are you that you'll be able to maintain the production rates that you already have in place at all of your plants around the u.s.? >> yes so our team members have done a great job of maintaining our safety protocols that have been put in place and certainly working and absenteeism is higher than prior to covid we've been able to secure transfers from other sites and temporary workers to get back to an operating plan. we're navigating through the circumstances and really enforcing that people follow the safety protocols because they do work >> real quick, the first half sales of u.s. for the industry around 14 million vehicles is that what you expect for the industry in the second half of this year or do you think we might move higher than that? >> our expectation is 14 million

in the second half of the year and within that a continued strength in trucks as well also. as you know that's our strong suit that's our expectation the current macro recovery continues. >> dhivya suryadevara, the cfo of general motors. thank you for joining us this morning. guys, with regards to the strong demand for trucks, they are dealing with tight inventory and we're hearing this from a number of automakers that continues to be the case around the country >> all right phil, we'll move to another former component in this case kodak shocking the business world yesterday with news it's moving into the pharmaceutical ingredient production business with the help of $765 million u.s. government loan joining us now for more on this deal, jim continenza, executive chairman of eastman kodak. it is good to see you.

welcome. >> thank you for having me this morning. >> is this a done deal somebody said the government has to do some due diligence or this agency of government that's providing the loan do you expect we can bank on this we had quite a move on the stock yesterday? >> we feel very comfortable we can bank on it we have some work to do it they wouldn't have made an announcement and everyone do what we did yesterday. we had dr. navarro, adam there, the ceo there. we also had rear admiral we feel very comfortable we signed a letter of interest we've been working on this for a couple of months >> in recent correspond with shareholders and the like i don't think there was even any

indication that anything like this was in the works? >> two months he started talks but they were very high initial talks. when the pandemic started we wanted to see what we could do to participate we were making face shields, boards for ventilators and started to go down this path it was so early. one of our core industries is chemistry. we do make some nonstarter materials not regulated. can't sell them today. we realized we can do more the government realized we can do more. they reached out we found a path that makes sense for the american public to help bring pharmaceutical productions back to america. >> we have seen a move in the stock and we just saw it today that's just absolutely staggering we are in this environment where things like this have happened with some other names. i do have a question, though, of whether you can lend any insight into this. i mean the volume is very

average. was very average in kodak. last friday, 74,000. last thursday 80,000 last wednesday, 52,000 on monday 1.648 million shares and then tuesday the news came out. how do you account for that, james? any why whether someone had wind of this. we didn't see the move in the stock until tuesday but that is so far and away, it's a multiple of the average daily volume over the last, you know, over a long period of time any idea whether this got out? >> i don't know. obviously, this has been a pretty tight secret even to the last day, basically. i couldn't tell you. >> i don't know if it was well kept doesn't look like it was a well kept secret. >> we knew for over a week >> okay. so this saloon that gets paid back like a lot of corporate

loan to be paid back in 25 years or so. and i guess the question i have, is this going to be very profitable for kodak because there's a reason that we outsourced a lot of the basic ingredients as a country to these pharmaceuticals to place where it was much cheaper to do this in india or china or wherever is this going to be profitable for kodak? >> it is again, our expertise has been in manufacturing. we're repurposing about a third, 40% of the buildings we have so we don't have new construction within this entity as we build out. so by repurposing we're using buildings that we already. that drops our cost. we continue manufacturing innovation we feel we can become very competitive. our building is 400 acres. has their own power, rail

system i'm not paying for that. that's huge costs that come out of this entity that gives us a very competitive advantage in going forward yes, i think it will be very competitive. >> are your going to be making the precurer for hydroxychloroquine too is that part of -- does this all trace back to the president in some ways, james >> this isn't covid-19 this is truly, we're showing through the pandemic is the breaking supply chain. 90% of most medications aren't even made in the united states we consume approximately 40% of them we need bring this back. this is why this is part of the defense production act others are following you must have these drugs. almost like the new war. you think about it we have to help protect the american citizen despite even the margins, we also at kodak have an obligation as a great american doe take

part in this >> your factories are ready to go with the quality control. these are not final product pharmaceuticals, these are precursors that you still have to worry about quality control but very similar to the specialty chemical from the photography business and you feel confident you can make these perfectly? >> i wouldn't use the word very. i don't use that often the material we're using are unregulated. we've been making them regulated for other pharmacies the last couple of years. we're doing this today then we'll get certified to do the regulated. i'm very confident we'll continue to make them today as we're doing. >> we'll be watching thanks james appreciate it. jim continenza, executive chairman of kodak. becky. >> thank you thanks, joe. when we come back top stocks on the move ahead of the opening bell then in the next hour don't miss first on cnbc interview with

starbucks ceo kevin johnson. stay tuned, "squawk box" will be right back

we are now just under an hour until the opening bell on

wall street. more than just under an hour dom chu is with us >> i found a story because of our conversation yesterday about how much work you guys are doing around the yard. remember, andrew this is a good one one of the bigger earnings related mover so far pre-market is scotts miracle grow this is, of course, the maker of lawn and garden products it raised its are quarterly dividend because scotts miracle-gro is seeing a jump in demand because people are staying at home during the covid-19 pandemic. so that's a stock to watch then shares right now of six flags which are down about a percent, roughly 11,000 shares of pre-market volume after they posted worse than expected loss on worse than

expected revenues. no surprise theme park attendance fell sharply in the prior quarter because of the virus pandemic then shares of spotify are down about 3.5%, 4% roughly 88,000 shares of premarket volume it reported a bigger than expected loss on lower than expected revenues but did sign up more total users and premium paying subscribers than analysts were looking for so that's maybe mitigating some of that move scotts miracle-gro fun story for your guys. >> instead of painting a room, sorkin, get outside with miracle grow no round up. hold the round up. >> grow big tomatoes >> dom, easy there big fellow. >> i like big tomatoes >> ready for the highlight reel. >> thanks. coming up jim cramer's first take on big day for the markets.

tech titans in congress. fed decision earnings and much more we'll talk about it all on "squawk box" so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪

all right. let's get to cnbc headquarters jim cramer is standing by. there's so many things i could ask you about. i think the washington story about the negotiations taking place in congress right now about what's going to happen with this relief package, how big it is, what happens to ton employment benefits, i think that, to me, is the key to what's going to drive the economy and the market what do you think is going to happen >> i think you're right. i said last night, we'll take any deal now tleen weeks from now. we have to have more money come to the people because we're at a critical moment in rents, critical moments in

soon-to-be-evicted, critical moment in retail the people have to have this money to get us to tide over until vaccines or else i think there's going to be general despair and a big decline? consumer spending. as it is, people are not spending that much let's get something done ahead of time, and then we have a decent rally if we don't get something done this week, i don't know when we're going to get it done you listen to senator mcdonnell talk about the thing that's not negotiable is legal protection no, the thing that's not negotiable is money to the american people and the middle class. that's what's not negotiable come on. come on, man. >> i'm actually shocked that it's gotten to this point. i don't know why it's taken so long i don't know why they're just sitting up and realizing, oh, it ran out last week? there are things that need to happen you watch this and this is like the one thing the market was never anticipating, this would

fall apart, that the two sides wouldn't come together on. >> i'm counting on secretary mnuchin who's been there time and again to broker a deal that gets this thing done maybe maneuvnuchin does it with business interruption insurance or say, look, let's make itmnucn he will deliver. i'm making that promise. mnuchin is a delivery boy. he can talk to both sides. he can speak to pelosi he does not call nancy pelosi crazy pelosi frankly, i think she deserves better than being called she's anything but he doesn't use names leader mccarthy, joe, does not use names. there's a commonality where you can do it in just 24 hours as long as there was no name calling and hydroxychloroquine

discussion. >> thank you for that. we'll be watching. >> thank you. >> thanks. >> okay. thanks meantime we get quarterly results this morning from boeing, gm, ge, and so many more companies, and the earnings parade continue this afternoon joining us now is neilla richardson, principal strategist for edward jones good morning to you. we've tried to make sense of the earnings report and the entire parade and, frankly, how much we're supposed to look through the covid news by the way, some of the covid news has had a contrarian event. some companies are doing better than expect. so what are you doing with your money right now? >> power of below expectations we've seen that this season with most companies beating the

expectations set out for them. more so -- and this is a bright spot -- more offering guidance for the second half of the year. so we're seeing a little bit more clarity on what the rest of the year could look like for these firms, but we know the second quarter is going to be bad for earnings in fact, really bad. a drop is expected of about 40% from last year those things improve, but they stay negative for the second half of the year before that sign turns positive in 2021. so what to do with your money is to look for those companies that can weather an earnings storm. those are the companies that have strong balance sheets you see them in tech, the big five tech names. you see them, though, in every industry you want to look for companies that can support their dividends over time, especially given the amount of economic uncertainty that we're seeing. >> question for you, which is you see so many of these earnings reports and even some of the guidance which looks

positive for the rest of the year you compare that to what the banks have done, largest banks in terms of the reserves they have taken how do you square that circle? >> things are at the front lines. we know that financials are doing bad. they're in a low rate environment. they're down 20% from the year there's no hiding behind any kind of mask of future earnings with the banks except in their trading, but in terms of the loan book, we can expect that defaults in -- for companies and for consumers are likely to rise as we progress through the year, and so what the banks have done is say, hey, look, we expect a lot of losses. this is our kitchen sink we're going to put it into our reports. but let's remember the macroreview of the financial sector they're not the problem this time around. as you well know, they were in 2008 they're part of the solution in terms of getting the economy back on their feet so in this sense, the banks can

basically take the -- i know we shouldn't say this when it comes to equities -- moral high ground because they're critical to restimulating this economy at this point. >> i just wonder whether you think the banks are being overly cautious or they're going to be right, because if they're right, then there's probably -- you could argue the equities would be overvalued. if they're wrong, the e equities would be properly valued, if not better. >> i think they are conservative that makes a lot of sense considering the uncertainty of the virus. it's the pandemic that sets the tone that conservatism makes sense, but as the economy improves, we think financials are the ones to stand the gain we're invested in financials as we are in every sector, but we

are specific in terms of industries. >> all right would you -- we're going to have this big hearing today and we'll be hearing about it all day in the next 72 hours. will you invest in those companies? do you think that there's a risk that this hearing or what it represents presents a challenge longer term? >> you know, tech is basically in the same situation that banks were 20 years ago. yes, there's probably going to be some regulation that comes out of it. but if you look at the path of future business, tech is in the right place at the right time in terms of the need for connectivity, the internet of things, cloud computing, their business plan precedes them. so we expect them to continue to grow, even if they're regulated. what regulation could do is set them up for an even grater role in the future as wireless services become even more important, as we're seeing with

covid-19 it's become very important for american consumers. >> okay. nela, appreciate your time and perspective as always. we'll look forward to that hearing later today, which is going to be news, news, news becky, it's great to have you back in the house. >> thanks, andrew. great to be here. >> we'll do this tomorrow. "squawk on the street" begins right now. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer we've got a fed decision, big tech at house judiciary, mnuchin/pelosi talks we have the earnings of starbucks, ge, jetblue jim, occasionally we get these days where it's going to be