think of only a quarter of that growth gets into the economy that is 6% nominal growth. we haven't had that since 2006 so, maybe it's not such a huge disconnect >> all right we'll see. rich bernstein, thank you. congrats on the pimilestone. we'll talk to you soon "squawk on the street" is coming up next. good monday morning. welcome to "squawk on the secretes i'm carl quintanilla futures on green out on pmis out of europe today and microsoft, tiktok another busy week of earnings on tap. oil is a bit soft as some watch for a possible resumption of opec production. jim, we're poised to get another open above the record close and what a week of gemedevelopments

regarding microsoft. >> some people did not like the quarter but now we have something that puts them right it not passing in terms of the growth google and facebook among a certain demographic that people want which is the 18-year-old demographic. i go on tiktok and there is a good one right now about federal express delivering packages versus u.p.s. versus the post office david, your kids may like it at the same time, it's got a lot of viewers >> it does 80 million here in the states. yes, one of mine does typically it does skew more female than male and the other one doesn't but this is a fascinating situation, guys, for any number of reasons unlike anything i can recall having seen in part because the government is so deeply involved inbasically dictating the potential sale of a business to one company. and it really ends up being one

company. you know, as you guys know, i've been following this to a large extent over the last few weeks and it was a difficult thing to imagine. how would go disposing of this business if they weren't going to be selling it to one company. how would they do an ipo and enormous ipo with some of their investors rolling in it was difficult but the sale route is certainly the one that would be easiest for them at the same time, bike dance, the giant chinese company at this point let's not forget most recently valued at $135 billion in the last round which operates tiktok around the world and has a huge presence in china is a position where they face the possibility of being shut down in the u.s. or sale to one potential buyer which is microsoft which is currently in talks to acquire the company price of which, very difficult to know.

but microsoft certainly in a very advantageous position it would seem because i'm not sure what other avenues they would have they could sue or try to use the legal system to say we're being wrongly shut down. but, you know, that would put them in a potentially precarious position and impact the overall company in a significant way given the growth of the company. a billion in revenue but as much as $6 billion next year if it continues at its current rate of growth we will have to see here so many different cross currents it's very, very fluid the situation at this point and, yet, microsoft isteresting posi because it has the onwnly checkmark. you see why from a security standpoint the u.s. certainly seems prepared to have microsoft own that business.

>> i have to tell you something. i am puturbed by it that chinese have my e-mail would microsoft be compromised and what would microsoft have to give up in china or what kind of security clearances are there? is this the right move versus a company that has no contacts in china and therefore won't be pressured. i don't know carl, when i heard about this this weekend, geez, i'm shocked the president would go for this because this is the back door, some people would say fifth column way to get into a major american company and i'm not crazy about it just not >> jim, if you are the idea here is to have the assets completely owned and run by a u.s. company with fully owned by u.s. shareholders or in this case by

microsoft, everything being based in the u.s., i don't understand what your concerns conceivably would be with something like that. >> how about another company -- >> what other company? >> how about general atlantic. they're in there why not buy the whole thing? >> you're talking about what could be $25 billion, $30 billion price tag you could imagine. certainly a number that is out there. we'll see where we end up. i don't know what price they're actually talking about >> what about verizon to make the media division just suggesting. >> maybe they're not interested. something that microsoft has been interested in for some time linkedin one of their biggest accusations. you know, they've always wanted social, you could imagine, as well, carl, this could even supercharge the use of azure all the data that jim is talking about, you know, huge data hog is tiktok, beneficial for the

cloud business at microsoft. >> two ways, carl. i don't know if they want them >> the implicit risks, guys, of running a social network all kind of twitter and facebook and not to mention the possibility, not likelihood, but the possibility that tiktok ends up being a myspace and ballmer not dissuade by that view. >> i say this as the shareholder at this stage, exciting proposition for microsoft and, obviously, depends on the price. price is important as well as whatever restrictions come with it from a government perspective but i think it's an exciting avenue for microsoft to really increase its consumer base >> increase its consumer base. interesting, jim, because others this morning tried to argue that it would operate more as a proof

of performance for something like azure >> well, yeah, i wouldn't want that either. again, i continue to believe that it would be better if tiktok ended up with someone who didn't have a lot of business in china. you can't access bing in china how can we stop tiktok from just sending everything over there and everything that we know, everything that we do in america will be owned. i know, david, you're saying, look, it's worse right now i'm saying what if they go to saudi and say, listen. here's the deal. you guys are doing real well i'd like to see this kind of thing. how do we get that microsoft could be compromised >> well, i mean, i don't know, jim. they want to cleanse company, apparently the u.s. government does and very deep and secretary mnuchin that report is into treasury the president, they know they want a cleanse company. this is a company that has been

approved to provide cloud computing for the department of defense in that $10 billion contract one would imagine it's hard to find another company that has been so vetted as has microsoft. i mean, apple, for example, hugely levered into china. i could imagine maybe why that might be problematic in some way and then go down the other list of companies amazon we know the president doesn't like them. forget them. and you can't do a large acquisition if you're facebook instagram a big beneficiary if it does get closed down. snapchat not big enough. doesn't want to spend that much money and doesn't have the wherewith wherewithall to get it done. pe is sort of possible but a huge lift, as well, given the equity check you would have to write there. not impossible but not for a company producing enormous amounts of cash right now. a growth company not typical, not as typical for these guys to step up in that big a way and

you could have bill ford roll in and, you know. i don't know it's hard. >> tyson food supply i'm not talking about hormel bill ford, general atlantic can put together a group and make this happen. >> why is that better? why is that better than microsoft? i don't understand >> they don't have as much at stake. i don't want the defense department to be linked up with tiktok david, someone wants -- >> a u.s. entity an entire u.s. entity. entirely cut off from the rest of it. you could make an argument that microsoft is taking on something weird because the rest of tiktok around the world new zealand, canada, australia, will be runned by bike dance so how you coordinate these companies but an entirely u.s. centric business >> i want an entire firewall i don't want the communist chinese to have any ability to

influence microsoft whatsoever i wish microsoft could make it so you couldn't get bing at all in china >> right >> so, microsoft, we can't have, let's see, who doesn't want to do it? clorox doesn't want to do it. we can find a company and get general electric to be with them and put together general atlantic and put together this deal yourself, david >> well, yeah. jim, i think what you're pointing to overall between china and the u.s. at this point. you're a hawk on that dooley noted and this is just a pawn in the larger game going on between these two super powers, economic super powers >> totally right >> jim, to that point. we haven't mentioned zoom today. starting the deal in china only through third parties. apple is stripping 30,000 apps from the app store in china. i wonder if all these things you think are sort of representing a

decoupling at least in tech in realtime >> it could. again, i know the issue is not the incredibly stupid videos that my kids waste their time on one kid and she's since divorced from it. it's about giving them information. david, i gave my password. they're in they got my e-mail okay david, you taught me that you don't want them to have your e-mail i learned it from you and now it's okay? >> i'm not saying it's okay. i'm saying that the government is very much aware of this and that this is part of a long-running effort that you have been talking about. but to carl's point that is going to separate the two largest economies on the planet. and continues to and i don't know that ultimately ends up being a good thing, jim. >> we should hear about whether how close bing is to the government carl, right? >> yeah. we have to get the view of how this is all playing in beijing

eunice joins us from beijing >> the message of decoupling is being heard loud and clear over here, as well. i was spending several days talking to various tech, people in the tech community and they all think if they have global ambitions or thinking about listing in the u.s. that they really need to reconsider their plans. so, did confirm some developments itself. a founder sent to his staff. the u.s. review did determine that it had to sell tiktok and that bytedance was in talks with a certain company and added that bytedance is still exploring other possibilities. a lot of the reporting out here is that bytedance does still prefer an independent spinoff. the company believes it is a

victim of the intense political environment. it also said in a statement that it was a very frustrated with what it saw as underhanded tactics by one of its rivals in the u.s., facebook and then the chinese government, as it would, weighed in saying that it opposed any u.s. action that discriminates against chinese companies. but what was interesting is the reaction on social media here. because when the situation with huawei came up this upswell of nation nationalism, but with bytedance totally the opposite a lot of people online who are calling the founder a traitor because he dared to attempt to build a business in the u.s. they've also been essentially saying that he's calling him all sorts of names because he had praised american values and said

that america, unlike in china as a place where you can openly discuss matters. so, i think what this shows is just how polarized the situation has become now and, again, like i said, that there is a message that is being sent that if you do want to work in the u.s., you got to think again. >> so, eunice, how much business does microsoft do in china and what kind of influence could the chinese government put on microsoft, even if it is separate >> well, it's -- that's difficult to say because microsoft does have a business here you guys were mentioning bing. bing is actually the go-to search engine in english here for me anyway because a lot of times if you want to go on google, it gets blocked, even if you have a vpn it's really sticky and then you want to go use yahoo! sometimes it works and sometimes it doesn't

bing is reliable in terms of search engine, it is the one you would go to outside among the international players. but, yeah, it's difficult to say how much leverage the chinese government would have on microsoft any more than any other international company because, as you guys know one of the issues that the american community and international businesses have with china is that a lot of times retaliation comes in several different forms. >> yeah. you know, eunice, you mention the preference being a spinoff that is something i know based on what i have been reporting or hearing for the last couple weeks was a real focus for bytedance. some sort of full spinoff of the business into u.s. hands so to speak. i mean, if you're bytedance and the founder who you have been talking about, you're in a very difficult position here. you're dealing with the trump administration, maybe even directly with president trump. but you're bafaced with the

potential of having your business shut down and losing all the value you created as a result or some sort of end game where you can at least bring some money in. don't forget, bytedance has a lot of large, u.s. investors i think we should make that point. general atlantic being amongst them one that jim mentioned a number of times, as well. >> i think a lot of those people would really want to make sure this company in some way, shape or form tiktok does survive because they have a vested interest they put a lot of money in and they don't want to see the value of tiktok in the u.s. and its hundred million subscribers as you guys were talking about that they would see all that value go away and i think it is quite difficult, guys, carl, for bytedance to see something it's built just completely disappear. >> sure. although a lot of companies are having to dosome calculus

around something like that, eunice we'll talk to you more this morning. a lot more to get to, guys half a dozen upgrades of pretty big names on the sell side new ceos at tisayson and clorox. futers are green 'rba ia nute ♪ ♪ as business moves forward, we're all changing the way things get done. like how we redefine collaboration...

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>> we have been for the $600, they have a $200 proposal which does not meet the needs of america's working families and it's a condensation quite frankly because really don't need it, they're just staying home because they make more money at $600. that's speaker pelosi obviously talking about the negotiations that continue this morning and this afternoon on the hill, jim. not encouraging on the sunday shows. >> look, i think meadows is the hardliner and it's very interesting that his team with secretary mnuchin wants a deal and i still believe that a deal is possible. if only because this would be, i think, hurt the republicans very much we're in a situation where august is going to be a tough month, not just ppp but which can still help, but just the idea that there are so many places now all over america that are boarded up and this is the month, david, we've been talking about this forever

the month where you went through thesecurity deposit of the people you lease to and now you want them out. and the only people who can really survive in this atmosphere are the giant companies and the h&ms reminded me of 1979 a couple stores that were open and every place is boarded up or being leased of which, of course, they can't find any tenants. so, david, this is push come to shove. they have to get a deal. they have to get a deal because america is changing right now in front of us. >> yeah. to your point, you have to wonder as a landlord, it's not like your next tenant is going to be in a better psosition if you find another tenant. as a commercial landlord not find another tenant that was paying anywhere near the rate that your last tenant was if you find anyone to take vacant space. >> exactly jim the 13th anniversary of your they know nothing rant.

maybe a different group that knows nothing this time around take a quick break he.er more "squawk on the street" continues in a minute. some see a grilled cheese sandwich and ask, "why?" i see a new kitchen with a grill and ask, "why not?" i really need to start adding "less to cart" and "more to savings."

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record close again today driven by names like pinterest, merck, qualcomm, yum. we'll get to all of that when "squawk on the street" continues on this monday morning

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welcome back four minutes to go, three minutes to go before we get to an opening bell. clorox will have a new ceo, jim. >> she oversaw the ignite program which really has brought out some tremendous value at clorox first female ceo it's about time, remember, it is a cpg company and most of the purchases are done by women. overshadowed organic growth and diluted earnings growth but the reason why the stock is down is not because of the change at the top, it is because they offered guidance that frankly is so conservative that is to be considered a disappointment

ahead. i don't know i think the company is historically conservative. i think if you are linda, you'd like to start out with this low bar and if you're beno can always say look where i'm going out. reinvented this company in a way that is exciting and very single the biggest beneficiary other than lysol because it's a health company. hygiene company at a time when the only thing that kills covid is bleach and they is synonymous with bleach and they did it with ebo ebola and with covid-19. it's very hard to get. we have their terrific smelling clorox but anyone who doesn't have clorox i question where they really want to kill this game thing >> although it does still remain something of a question as to

how readily it replicates from surfaces and how contagious it really is. >> i still keep the packages outside. dr. fauci with very negative comments on how this thing could always be with us. we have clorox everywhere and that doesn't keep you from getting it you try. >> those six years went by fast, jim. >> yeah. >> i was shocked i sent him a note saying, i think it's too fast because he's been so terrific he says he has other things he want to do in his life we are seeing from a lot of ceos who want to go ahead and turn over the reigns and go do something else that is give back that's what he wants to do and i think he's certainly reinvented the company in a very positive way. if you look at that stock chart, you know when carl icahn tried to buy it in the '70 a mistake for the company to sell. he's 56.

he's 56. that's young, david. >> thank you meanwhile at tisayson new co revenue slightly light opening bell and speaking of getting rid of covid, jim. new phase three antibody study out of lily. they're basically enrolling 2,400 to look at high-risk et issings like nursing homes, jim. if we could put a lid on that component of this disease that would go a long way. >> 8% of the deaths are nursing homes. typical of eli lily to be nonpromoti nonpromotinonpr nonpromoti nonpromotional people regarded this one as a disappointment kind of like microsoft when they so-called

disappointed i think david ricks is promotional and versus my friends at moderna who are using hot spots for its tests. when you have a vaccine, if you're just hanging out a new york deli, you're not going to get it they are focused on people in florida, california, texas with their trial. that makes sense i'll give moderna a nod there. tip of the hat you know, david. >> right you want to have, i mean, obviously, you'll have people who don't have the virus but a cohort that does merck also up, guys, from an upgrade from goldman sachs to a buy. a lot of the call on friday i pointed this out but focused on mk 4482 their phase two soon to move into phase three trials showing a lot of very positive signs. >> that's the pill, david, right? you get it, you test you test what happens >> yep

you take it. for five days. oral, antiviral five days and it immediately defeats the virus and that's it. >> so, if you're in the nba and you get the instant results, right? if you're the rest of us and you get it in 14 days, david, does it help you? get your results in seven to 14 days >> exactly but in this case, jim, you had signs. now, of course one of the things so many people are asymptomatic if you were sick or exposed to someone who has gotten sick you take the oral antivirals and a five-day course is what they're talking about and that would be it we talk so often about vaccines because easier for people to understand the concept of it but these could be equally if not more important in some way given they may be available sooner and certainly the case for using them is going to be much stronger because you're going to be sick and you're going to want to take something that certainly could defeat the virus if possible. again, that's why i continue to focus so much on it.

it does appear that i have heard, as well, that operation warp speeds those active actvi trials that the government is funding. only one of 70 antivirals out there that they're getting it to trials, as well. keep an eye on merck and keep an eye on that. >> the only ceo that has said, hey, listen, you know, we're being maybe pressured by the government, kent fraser. i think that is the outfit that i trust the most carl, it would be so great because you take a pill and then you go back to work instead of this emorphous thing can the coach now or coach later or third week nobody knows anything. if you're coach pederson and what happens on day eight? this whole world other than adam silver and the nba dome does not know what it's doing and it's

still impossible the tests are being diverted from our area, carl. i think this pill is going to be another thing that is done in a slip shot way and it will not be merck's fault. meanwhile, pretty powerful lens to look at some of the movers microsoft is up there this morning, jim, but so is ksu from some of the chatter on friday. >> that's extraordinary. >> look, i just think the ksu why would a private equity want to be in a crazy, you know, most cyclical business and warren buffett has it, but i think that's an up and down, totally up and down and ied with n ewouo that i think the better one is elliot partners and what they suggest, david. remember when they told marathon they should sell speedway and marathon said you don't want to sell speedway, it works together

how did they do marathon >> they did very well. what's interesting to me, the stock price is not doing much. just moved into positive territory. a moment ago it was down i would have thought otherwise a sale of their speedway division to 7-eleven is what we know them as in this country which would dramatically increase the size of 7-eleven here in the united states and a fuel and an agreement between the two for 15 years in terms of marathon providing fuel to the speedway stations. they were very close earlier this year. i think it was earlier this year i was following it a lot more closely then and then things fell apart and we moved into covid. they didn't get to the finish line with 7-eleven at that point. $16.5 billion in net proceeds and going to use it to pay down debt and buy back stock. to your point, one would think it would get a very positive reception. the stock is finally moving a

bit higher as we're speaking, jim. but at the outset of this auction yet again, the second time around, $21 billion would have been seen as a very strong outcome given the multiple to i think it around $2 billion that this thing generates. >> you have to buy it. this is ridiculous just a fantastic move. marathon dividends carl, this is not supposed to be an exciting time and it's supposed to be dead. david, how is it not dead? >> it's not dead you know, some interesting activity now, speedway was something that had occurred, fell apart or at least didn't get to the finish line pre-covid and now restarted. tiktok and microsoft is completely its own thing as a result of current conditions you're right and then the undercurrent particularly when it comes to cancer therapeutics which is the

deal has always been very strong and a willingness on the part of ceos to doing deals. they seem willing to come back to it at least at this point in time, jim. judging from what i'm hearing in conversations, you know, bankers are no longer talking about restructurings and they are back to talking about deals are potentially going to happen. as you all know, if you get a lot of volatility in the stock market, things could come to a quick end in terms of any real momentum >> absolutely right. absolutely right >> money is definitely cheap, jim. i noticed alphabet six part dead offering along with this investment in adt worth about $450 million in which they'll pair nest with that home security company getting interesting there. >> 6 million homes and you have, you know, 6.6%, $450 million heavy shore position

adt because it had been viewed as a failing enterprise and no longer failing i think that's a nice direction there. adt up five versus marathon, marathon is the buy. adt is the sale. >> yeah, but, that's exactly what you said as usual, jim. i think the idea around adt was, you know, not particularly good. i happen to be a user and thought very strong service. >> do you have the sign up or you actually have it >> no, i got it. i got it i pay the monthly bill it works very well >> you put the sign up >> no, i really got it by the way, i got nest, too. those i haven't been as happy with i had to send them back a couple times because of their connectivity issues. installing a nest -- i mean, it's the first time sharing it installing a nest is not that easy so the idea is that adt will be able to help with that then you can set it up fairly easily but actually installing it in terms of the wiring, people try

to do it at home and not as easy as you might think i have questions to the reliability of the devices, as i said it's a nonvoting stake these are the kind of deals google is going to have to do because unclear they're going to be able to buy anything outright >> carl, exciting time much more exciting than you expected this time of year >> it is well, it's not always for the right reason navarro is on the fox saying the president wants unemployment and eviction while the broader virus aid talks continue "washington post" has a piece out saying the white house is looking at things they can do unilaterally in absence of a deal one of them is an idea from steven moore that would have the irs immediately stop collecting payroll tax. not sure if that's part of the calculus at the white house, jim. any kind of skinny deal democrats have been resistant to >> that backdoor larry kudlow

move and i have never been a big fan because i worry about where the money is supposed to go for payroll tax. but i think, i still believe that they will have a quarter. a deal i think the republicans will give in. maybe give $200 more and that will satisfy speaker pelosi. but it's got to happen because, boy, if it doesn't happen and people stop getting that extra money, i don't know. they won't be able to afford their rent they won't be able to afford their mortgages and that will cause the banks to take a huge hit. >> that's why morgan stanley, mike wilson today, jim we find it highly unlikely congress will fail to extend this they have that old saying. no such thing as a temporary government program they say it doesn't mean that we don't need to weather some uncertainty around the passage of it. any weakness around a delay to add to equities. >> he's been dead right. comes on lot and many good things to say and kind of a beacon we have, novarro talking about

that he doesn't seem to like this toiktok deal, david. >> microsoft that stock is up 4.2% somewhat surprised because you could have at least you would imagine some of their investors kind of questioning it but that does not appear to be the case so successful on the enterprise level and, obviously, x-box is a successful consumer product but a very mixed history when it comes to sort of bringing things directly to the consumer, jim. i had a question on the payroll tax for you, jim i don't understand what is seen as the benefit? payroll tax is for people who actually have jobs not for people who don't have jobs >> david, what can i say seems ill advised to me. suboptimal way to put money in

people's hands because they're the people who already have the money. but, david, you raise a good point. it's not the way to go >> yeah. okay i just wanted to make sure i was following. >> you're dead right let's give -- why don't we give a break to the people who make more than $2 billion >> sure. >> that's the cut off. >> sure. >> they make more than $2 billion. they have two guys that are australian that are each worth $10 billion. now maybe that's if they're australian, you can't tax them what do they think of in the white house. let's -- i mean, david, if you make a billion, you don't have, there is a cutoff on the payroll tax. you don't get hurt >> there isn't i didn't realize that. okay that's good to know. >> get hurt. >> thank you for that. >> i can't wait. i can't wait to hear your segment on pinterest, jim. on the wake of that incredible quarter does go to buy

23 up to 42. but, i mean, the superlative is pretty impressive. >> the july numbers are up 50% and a big beneficiary even on the call of the boycott they used the term boycott. carl, i have to tell you the consumer products is going towards pinterest because it's so not controversial a new section on glamping that is very good and, so, what happens is there isn't an ounce of controversy on pi pinterest whatsoever the mr. rogers of this you can call it whatever you want it is certainly clean. it's whole it's american. but believe it or not, most of the growth has come international. but, yeah, pinterest is killer and ben is a nice guy and nice guys deserve to win now and

then i like it. >> as i recall, a guest of this show at one point but i guess, i guess that's over with thank you for that, jim. >> no problem. you know, look, ballmer i knew very well at college and he's been coached by squawk and howard shultz and we're going to have to have a talk. no, we're all friends. >> yeah, we are. jim, by the way, marathon now up over 4%. >> there you go. good we have more power than the stupid brokers the brokers are like, i think marathon and, of course, the guys have a hold >> upgrade pinterest >> i tried to upgrade pinterest on friday but i didn't have the number yet pinterest is unbelievable. who knew that july was so good who knew consumer package companies want to go there it's soft and cuddly you know there is a lot of stuff on tiktok that you don't want

your kids to watch, david. a lot of four-letter words on tiktok did you know that? >> don't forget the first person you heard tiktok from. the only time i told you something i don't think you knew already. microsoft up over 5% if they want more encouragement to get this deal done, they are getting it in the marketplace today. >> yep one reason the nasdaq all-time high this morning, guys. the eco data flow continues. let's get to rick santelli this morning. good morning, rick >> good morning, carl. our july final read for market pmi that goes back to 2017 is out and it takes out the 51.3 a mid july read and now replaced with 50.9. 50.9 the good news it's over 50 it's in expansion mode and did digress just a bit and 50.1 is the best level, well, since 50 by .7 we will have ism national number coming out in 17 minutes and if

we look at what is going on with ten-year note yields, fascinating. up three basis points and curve is steepening with two being unchanged and the two-day chart shows us the most important issue and that is we settle a bit under 53 and the low-time yield 50 basis points and friday we took out and go back to march 1st. that march 9th low yield close and place it with a bit under 53 that may not sound like an important deal in a way, it is, though. we all know it is most likely coming and treasury rates continue to press and lower for as long as the eye can see and, of course, with congress continuing to debate with regard to whether we're going to increase the deficit some more it createsdichotomy and interest rates are not only going down and sovereigns are making pushes to all-time lows finally foreign exchange has

been dominated by weakness in the dollar july down close to 4% and a couple days of bounces this chart is the two-day of the euro which is the mirror image it lost a bit of ground. covid spikes monitoring a bit and according to some of the reports eroveremphasized some of the euro economy if we look at gop whether it was spain and germany and if you look at it annualized and even though the u.s. wasn't terrific, still better than most of those european economies especially germany. so, the depabate goes on where investors are best served and at least for the moment the dollar index popping a bit and the euro taking a step back carl, jim, david, back to you. >> all right, rick, we'll see you in a few minutes for ism. in the meantime, 4% gains for names like microsoft, tesla and apple. nasdaq all-time high this morning and politico say mnuchin

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>> he has no idea. i talked to the heads of almost every single one of these firms. bill pool has no idea what it's like out there my people have been in this game for 25 years and they're losing their jobs and the firms are going to go out of business and he's nuts. they're nuts they know nothing.

>> cramer. >> i have not seen it like this since i went five bid for half a million shareses of citi group in 1990. this is a different kind of market and the fed is asleep >> no introduction necessary on that clip, jim kids that were born on that day are almost in high school. >> this was just a frustration at the time. the fed was jolly if you look at the transcript it was mentioned at the next fed meeting and it says underneath, laughter because i was viewed as an alarmist i'm an alarmist on covid-19. i think vindicated earlier on covid-19 than i was there. but erin burn ett. she played the straight person to the lunatic i lost my temper, but i've

become far more jefferson. >> you are jimmy chill i remember that at my office at our head quarters is on the back in the second floor. i had no idea what was going on, but i was scared because i heard yelling at such a sound that i thought the building might be on fire it's important to get things right. that, and then co-vid, some of us were making light of your predictions. >> including you at my birthday party. >> yes well, i can't wait for the next one because then i'm going to have to make amends. >> i don't know if we're ever going to have one again. >> oh, we're going to have another one. >> i'm saying they may not have -- where? around a campfire? six at a time? >> maybe we'll wait for the next

big birthday so we have another four and a half plus years >> all yours, carl >> hopefully it's not that long a wait we'll take a break as we watch the move on apple that's hesically all the dow's gained at t moment. we're back in a moment this is decision tech.

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president's up watching the stock market record high nasdaq he says it would all come crashing down pridt.epy joe was esen that's what he says. microsoft is in the news we'll get to that when we come back

let's get to jim and stop trading. >> there's been something going on people are upset about the wig five and apple i think the thing that should be focussed on is the endless target raise when a stock goes up this morning square, deutsche bank raised it to 140. you get these every morning. someone comes in tomorrow and says i have to raise my price target from 130 to 160 those are the things i don't like, even though i like square. pay pal, same thing. the analysts cannot avoid it they love raising price targets. it's been moved up on that, not necessarily on new information like microsoft

i prefer the microsoft way to move up. >> yeah. sometimes even the down -- sometimes the downgrades, jim, get a price target elevated. >> that's always grade >> pinterest tonight >> yes, and clorox and benno, could be negative guidance that i think is unwarranted. and atlassan they say mate. i've never been considered mate aside from a stint on is uss minnow >> don't look now. apple is approaching $2 trillion in market cap to your earlier point, jim >> carl, this is it. there's a lot of good news with apple. i don't know the news with other companies that keep going occupy those are the ones we should worry about. >> apple doing heavy lifting today. we'll see you tonight.

>> fun show. >> 6:00 p.m. eastern time, mad money. welcome to "squawk on the street." i'm carl quintanilla with david faber and leslie picker. new month. dollar bouncing after the worst month of the decade. good pmi out of europe a decent pmi here. now it's time for ism. let's get to rick santelli >> absolutely. we're expecting a number around 53 1/2 to start our july read for ism. 54.2 this is the best read since march of last year when it was 54.6 quite a surprise, twiactually the internals, if we look at new orders they leapfrog from 56.4 to over 60 61.5 prices paid there's a whiff of pricing pressure actually showing up on prices paid and the employment index, and this is very important considering

wednesday and friday this week we're going to get employment data moved from 42.1 to 44.3. even though it moved up our june read on construction spending came in down .7% we were expecting a number on the up side. on the revision we gained a bit from minus 2.1 to less of a negative minus 1.7 carl, definitely market and ism. both over 50 ism was a much bigger beat and we'll have to watch and see how the markets incorporate some of this new information. david, back to you >> rick, thank you a close eye on shares of microsoft. up about 4 % this after a lot of different reports over the weekend i can now lend my voice to it as well microsoft is talking to the parent of tiktok around the world, but microsoft focussed on potentially buying the tiktok service in the u.s

australia, new zealand and canada included. the president said he would potentially shut down tiktok but is supportive of a potential purchase by microsoft of the u.s. unit. let's get to eamon for more on what is a fluid situation. >> yeah. david, that's right. a lot of wheeling and dealing in the social media space and oddly enough, a lot of that wheeling and dealing is taking place inside the white house with microsoft suggesting that their ceo had a phone call with president trump over the weekend to hash out the details here microsoft issuing a statement very much suggesting that they're looking to move forward with this transaction. what they're saying is in part microsoft fully appreciates the importance of addressing the president's concerns it is committed to acquiring tiktok subject to a complete security review and providing proper economic benefits to the

united states including to the united states treasury so the president taking a direct role and the law allows him to do that, david the committee on foreign investment in the united states does take a stand on whether foreign entities can purchase u.s. assets or do business inside the united states they have been given much more expansive power. the big concern at the organization and the white house is access by the chinese government today a on americans, and with 100 million u.s. customers, tiktok certainly has a lot of data on americans and the question is whether the chinese government could use that for some nefarious purpose. it's been on the up tic of concern. that forces a transaction. >> fascinating

sifius comes to mind, and it's the cause of centrality in the disputes between the u.s. and china. i remember qualcomm fighting off a hostile bid from broadcom. sifius came to the rescue and said 5g is a priority. and even though broadcom became a u.s. company, it wasn't enough >> sifius, it's getting much more involved in anything having to do with data of any kind. and in recent months a new focus on medical data acquisitions by the chinese. there's real concern around that area as well so this is a much broader effort now by the u.s. government to block chinese acquisitions of a whole host of different types of assets inside the united states. anybody in the m&a industry needs to pay attention to what's

going on at sifius >> thank you we know you got to watch that and the talks of covid-19. let's bring in jim stewart and kne nelay. what's the best answer for some of these hawkish concerns, the idea there's no real way to put a lid on tiktok's u.s. ops and it's somehow this trojan horse from the chinese to infiltrate domestic tech? >> i think some of the concerns are well founded we've been hearing them from the security founders for a long time they've been hiring employees in the united states, up to 1500

people they've been doing a lot to hedge against the concerns but their ties to the parent company in china, and they share data with their parent company, it's real there's a lot of reason to look at this. i do not think for one second we should pretend the white house has a logical or consistent policy for using sifius to evaluate i think donald trump was mad that teens ruined his rally and is punishing that company. we should be clear-eyed about what happened here >> huh jim, do you -- you have to admit it's a bit of a stretch to think the guerilla tactics of teenage users made its way to the white house and resulted in policy do you think that's part of this calculus >> i don't think we really need to go there but i feel first just shutting

down tiktok as the president threatened to do would be a huge mistake. one, we had hearings about big tech being too powerful last week tiktok is an amazing example of a new entrant who came in here, blew their way into the social media space, facebook, google, for all their power, they couldn't stop them this is the kind of competition everybody wants to see in social media. number two, there's a huge user base very young skewing it's devoted to this and wants it i don't see shutting it down as a viable option. the idea of trying to address the security concerns by pushing into american ownership i think makes a lot of sense it deals with the security threat which i'm not an expert in and i haven't really seen a case for that i'll take it at face value and it preserves tiktok as a viable social media option i will say it's -- there's irony in that they -- that microsoft would be the one buying it microsoft is not exactly a young up start, and the government was

suing it for mo nop olization. >> nilay, how do you think this is going over in china a morning post saying bite dance prefers a spinoff of tiktok rather than selling to microsoft. this is considered a chinese crown jewel. will microsoft if they prevail in this tickover, will they be required to pay a premium for this >> i think they would prefer a spinoff. i think that was where they were headed with some u.s. investors increasing their stakes. but at the end of the day, it seems like president trump wants microsoft to take it over, and that's been the conversation tiktok's chinese origins are getting it in trouble around the world. it's banned in india after a dispute between the governments. the data collection is real. and something to be really concerned about is we don't know

how the algorithm works. they've committed to algorithm transparen transparency, but they're in charge of a massive information distribution system to primarily young people and we don't know how they pick and choose what to show you and so i think those two concerns coupled with the connection to the chinese government are very real around the world. and tiktok, yes, it's a crown jewel and they prefer it to be a company that stands up alongside the facebooks and googles of the world as massive technology companies, the first chinese success story, but they have to contend with concerns governments have every with control and distribution >> should point out kevin mayor is likely to be looking for other work if, well, either way. microsoft buys it or it gets shut down. of course, he has not been the ceo of the company for a long period of time jim, facebook is seen as a potential winner here, if you were to shut tiktok down,

instagram, obviously it's my understanding that robert kimmet is a board member has been involved at least in sort of trying to let people know the dangers that tiktok presents to the overall community. kind of an interesting part of this as well in terms of how facebook would potentially benefit. >> well, i don't think there's any doubt that tiktok is a big threat to facebook if they lose a substantial population, it becomes devoted to the alternative social media space. who knows where tiktok stops facebook tried a tiktok rival just like they tried to take on snap it didn't work so tiktok has something going for it if i was facebook, i would be quite nervous about the competitive threat that's posed there. on the other hand, it helps take the pressure off them. it does show we're not that much of a monopoly like a tiktok can come in here and eat our lunch

>> that's a really good point, jim. i'll close with nilay hopping onto that. for so long the argument has been no one can get enough scale to effectively compete with tiktok, but you're getting a huge lift, a huge assist from a fellow giant that is admittedly new to the space what is mark zuckerberg thinking right now? >> we covered the hearings last week, all my time. one of facebook's arguments was we have to be this big because otherwise the chinese government is going to push companies like tiktok to be bigger around the world. the national champion idea goes out the window if microsoft, another great american company gets to buy tiktok and run it. i think microsoft is kind of ready it they've been out of the consumer space for a while. they have the ability and they don't have to do it. there's no strategy pressure it's just you get to buy a

growing smash hit company for basically pennies compared to what it might be worth on the open market. you get to run it and compete with facebook. i think zuckerberg is saying crap, i just lost my best argument for -- to push back on anti-trust >> right right. fascinating turn here, guys. even as we watch microsoft up 4% one of the top performing names on the dow on this monday. guys, thanks good way to start the conversation this week >> good to see you >> thank you when we return, vm jrn ware partnering with dish we'll have the ceo of vmware out it next. stay with us college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

vmware will partner with dish to help build out that company's 5g nationwide wireless network. we are joined by patrick gelsinger. this has been a focus of mine and many others in terms of dish's efforts here. how is your partnership with them going to help them roll out this network >> thanks. pleasure to join you this morning. you think about it this way. 20 years ago data centers were built vertically hp, the hardware, the operating system and the applications were all provided we one vendor in the era of cloud and data

centers, now the horizontal hardware, operating system, and applications the telecommunications networks are still built this way what we're doing with dish is building the network the same way we built data centers and clouds as well vmware is providing the 5g operating system standard hardware, our operating system and services on top of it literally an open standards b e basbas based secure 5g based cloud that will enable 5g from essentially all u.s. or u.s. allied companies. it's exciting what we're doing with dish. >> all right i'm going to ask you to define terms for me deeper into the press release you say vmware cloud provides an extraction layer and enables dish to leverage hyper scale public cloud capacity while

needed while maintaining the core control points. what does it mean? >> a mouthful there. well, first, it's the idea of the operating system that we're providing. and that connects to all the hyper scalers, amazon, and vmware enables the connection. it enables the hyper scalers all done in an industry standard software approach and enabling a wide range of applications to sit on of them it. we're no longer constrained to the vertical constraints it's a wide eco system if the vmware environment enables the software, the shrill c silicon and cloud, these are areas of u.s. strength it's exciting to see the approach with a highly automated green field environment with our partners at dish very excited >> yeah. a lot of people wonder how quickly dish will be able to get

the network up and running if they'll need partners what's your sense in terms of getting dish's commitment moving quickly to establish this nationwide -- >> we're now in the midst of transferring this out. we have a network set up and operating all the third parties are in our layouts a and we're transferring that into dish's centers that is their production deployment environment we're excited to see the progress i've interacted with charlie now on numerous occasions as we've put together the partnership there's no doubt they are committed to this deployment as they said, they're going to be reaching 70% of homes across america. it's part of their commitment to the nation and to their licensing. and we're excited to be part of accelerating that deployment they've been announcing the different technology partners working with them all of this

vmware 5g operating system we're excited we can move quickly to live up to those expectations and make dish the fourth carrier in the u.s. all with this green field cloud approach delivering 5g >> when do you see them having a commercial service available >> i can't speak for dish in that sense it's going to be their network and their operating environment. what i can say is we've made great progress over the last three months as we've built out the test network and the announcement we have just done with dish says we're making good time to bring this into production with early deployments and nationwide deployment >> making of your company, i talked about it not that long ago as well, given dell has made it clear it's going to pursue the idea of a spinoff of vmware. it would make you a fully public company, not 80% owned by dell

are you preparing for that eventuality? i know it's more than a year away, but it's something that's captured the imagination both of your shareholders and of dell shareholde shareholders >> clearly we see the depth in the equity markets would be positive on such a move and a positive response from the markets are indicative, yeah they want this to happen there's a lot of opportunity and yeah, me and some of my leadership team are now focussed on working with our dell and silver lake counterparts to start building out exactly how this might occur clearly we have a long way to go between now and september of next year when we hit the five-year anniversary for a tax-free spin to shareholders. i'm optimistic we'll come can to to the that point with a successful agreement we believe the markets will respond positively to in a the ecosystem of vmware we believe will be positive and our customers and employees will be positive we're confident that yes, we can see this occur, but a lot of

work to do between now and then. >> yes certainly. a lot of different things to negotiate. i wonder does it change your approach at all, the idea that you will be a fully public company? will it change your approach does it endanger in any way some of the benefits you've had from being aligned with dell? >> we clearly see this partnership that we've built with dell, you know, as an independent company today, but still uniquely partner with dell brings solutions to the marketplace in our joint customers has been well received what we've been able to balance in an open eco system already. we believe on the other side of the public spin we'll be able to do so. we'll have the unique partnership with dell continuing to service our joint customers but a broader birth of capabilities and flexibilities to reach more market than ever before so yeah, i believe we can do the best of both worlds. >> yeah. well, dell's stock price benefitted from that prospect. as you point out, still at least

13 months or so away, and i know we'll see you between now and then thank you for today. i appreciate it. >> always a pleasure thank you. time now for the etf spotlight. looking at the technology select, xlk up more than 30% since the middle of march. holdings by microsoft and apple carrying a weighting of over 20 for microsoft in the etf, and up around the same amount since the start of the year. more on microsoft's possible acquisition of tiktok straight ahead. stay with us hey there people eligible for medicare.

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good morning here's your cnbc news update more than 2000 favoriters continue to battle the so-called apple fire in southern california late last night officials said the blaze had grown to more than 20,000 acres with 5% containment. nearly 8,000 people have been forced to evacuate their homes the world health organization saying the fatality rate for people with covid-19 is just 0.6%. far lower than initial estimates. however, the head of the group also warning there is still no, quote, silver bullet against the virus and there might never be one despite recent progress on vaccines and a key architect of the peace process in northern ireland died he won the nobel prize for his efforts which he shared with his

protestant counterpart john hume was 83 years old that's the news update this hour "squawk on the street" continues after a quick break. apps are used everywhere... except work. why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret.

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m&a activity at least this morning appears to be getting going. this after a fairly quiet period let's bring in ken moelis, the founder chairman and ceo of meolis and company here to talk about lots of things ken, thank you for being with us >> good to be with you >> let's start off on mergers and acquisitions are things starting to pick up and will that continue for the foreseeable future >> yes it's interesting i see some ep sodic things go on like microsoft transaction

today. but we saw it six, seven weeks ago. quality assets people were ready to buy i think there's a desire to look over this -- the immediateness of what's going on today if you want to buy something you think is a permanent asset, you're willing to look through the next six, seven eight months m&a is heating up. >> and what could derail it. typically it's volatility in the stock market and you're denting ceo confidence is it your sense believing the second half of the year is going to be active and something that's going to happen >> i think it's a matter of time this is a unique event i think most people feel like it's a matter of time. i guess there could be turns for the worst. it was interesting, david, i saw you talking to jim cramer earlier about 13 years ago his

rant i think i was sitting in this chair waiting to fund and found this company on that exact day i was watching i think jim's rant thinking well, that might have been a bad time to start a company. in retrospect, it was the best time to start a company, because we had the benefit of the tail winds and the recovery coming after that i have to say it was scary as hell at the time, but i just want you to know that i think that's what people are thinking. that there's going to be a long ten-year up cycle following this it's hard to know when >> yeah. i'm curious, let's talk about moelis and company given the 13 years almost since you founded the company. you end your last quarter which you reported last week with 194 million of cash. you have an undrawn revolver do you see this as an opportunity for you to continue

to grow? >> yes i think all the times, all these difficult periods of times, if you go in with a good balance sheet, the option of having a good ball lapse sheance sheet i underappreciated people leverage up and do stock buybacks for a penny ashare in fact it's an expensive penny i takes away the optionalty in times of crisis. interestingly i was look agent the five or six tech companies we consider driving the whole economy right now with 25 % of the market value there's no debt on those interestingly, that $5 trillion of market cap, they don't have one cent of debt which is kind of goes against the whole idea that you have to maximize your balance sheet and leverage so really your answer for us was we've been preparing we didn't know when a crisis would hit. but to be -- we have no debt

we have excess capital and we believe these are moments in time like 13 years ago where you can create enormous value if you have the optionalty to do it you need the flexibility to do it >> right right. well, you mentioned debt, and there are plenty of companies that have too much debt and not enough sales right now i know you expect that there's going to be an up tick in m&a. is that going to come along with continued activity and restructuring or at the expense of it? >> it's a really bifurcated economy. it's misleading what's going on with the s&p 500 there are 8 million smaller companies that are running restaurants, doctors, dentists i don't know of them having a good run of it right now i do think you're going to have a tremendous differential between those who take advantage of what is a horrible event and that's the s&p 500

even the russell 2000, these are the best companies, the strongest companies in the world. and i think the market is saying they're going to benefit from the weakness of the 8 million smaller companies. i think it's a disastrous read on the economy but that doesn't mean it's a horrible time for the stock market which means, by the way, you could have a significant amount of restructuring going on at the same time that you have a significant amount of m&a. i've never seen that i've been in the market 40 years i've been doing this i've never seen both happen at once i think we could soo that for the first time >> yeah. but i mean, ultimately doesn't an economy that is suffering as greatly as ours is right now conceivably will be, doesn't it eventually catch up with everything, or are these big guys that you've talked about just going to be immune and continue to grow at the rates we're becoming accustomed to or even faster because of the digitizing being accelerated >> that's a great question i think the economy is yet --

look, we've put about 3 trillion in the economy we have about a $18 trillion economy. we floated almost the entire economy for about a quarter if you annualize the spend. i think there's a lot of bad news to come in the real economy. so -- and then you have this war with china i mean, as i said, we used to have a cold war. i think we knnow have a code wa, and it's a war and it's going to be significant and we're going to rearrange our lines of supply and a lot of ways we use data there's a lot of things going on i believe will effect the real economy. i think the banking system, i think behind the two big merger announcements today, there were a couple of bank announcements of losses. i could see that getting worse over the next 13 12 months all those retailers you put on your screen this morning that have gone bankruptcy, somebody

has loans out to those firms as well >> ken, you and i talk offline sometimes about macro factors and you have takes that are different than the general con sen k census are you worried about the deflation? >> i felt there was enough data out there that deflation would happen i've been a deflationist coming into the last couple weeks just on the fact that there's a lot of debt in the market and people underestimate that what happens when you have to pay back debt, but david, i've never seen there there's a fundamental change we've printed $3 trillion and sent checks to people's homes. i don't think that's ever happened i'm not -- there's a unique event. the governments have shut down businesses i do it almost as imminent

domain there was a taking of people's businesses, and somehow we need to compensate them for that. we took it for the benefit of health in the world and in the united states. but i do think it's very worry somethat we've had a debate over things like mmt. things put to the side but once you start mailing checks to people, it's hard to undo that. very hard to explain to people why this can't go on forever and we can't mail $600 checks forever. i think we're going to have a difficult political time coming out of this and going back to the methods and the way we used to think of things so i am a little worried that this is a different event. it's triggered a different way of thinking, and it will be hard to undo. >> yeah. all right. so i mean, i'm listening to you. you're positive on your own business, but you do not sound positive overall, ken. >> well, look, i'm positive.

we came into this with no debt and excess capital that's a very, very different place to be. and we give advice we're asset light. the big banking system, you know, even the best of the big banks is levered 10 to 1 you know, it doesn't appear that way to the outside, but they have a lot of loans on their books. so i'm concerned about the basic economy. yes, middle america. i don't know about you, david, but again, the 8 million small businesses, i don't know any of them that are benefitting from that or let's put it this way, very few the local restaurant tour. even the local doctor, dentist, professional, i was -- somebody was mentioning construction firms, architecture firms. the basic person who went into business, this is not helping them, and sooner or later the government has to stop fu

funding -- can't give checks out forever. something happens in the next six months to the basic economy. i don't know what it is, but it doesn't seem good to me. >> yeah. and the brief time we have left, let's talk about market trends one is special acquisition purpose. there's news on them is this a trend here to stay in terms of companies using them to go public as opposed to the traditional route of an ip so? >> it is for you two things, it's part of the democratization of technology allows demock democratization. you can find your own underwriter. you find your own. the second thing that is very undervalued is speed and

certainty. you follow m&a and you've always talked about speed and certainty is valuable to a ceo and to a company. the ipo process in the united states is too long it's too coupumbersomcumbersome the spac has taken two or three months out of the process and has added to the certainty, and people will pay a lot of money for that people about the economics of a spac and get worried about it. but speed and certainty, getting caught in the middle of a transaction when the world changes on you and the world tends to change, is -- could be disastrous right now i think if i was to do something predict which would end spac, it would be the sec cutting the time frame, getting the regulatory timeframe on ipo and cutting it in half maybe it would be competitive

again. >> right so you do see them staying with us for some time i mean, the proliferation has been enormous. typically we see sort of a tipping point where the quality starts to really decline >> first down market turns down. ipo markets are always the whip end of the market. they come and go rapidly so if the market were to take a downturn, it would be difficult. remember, what's driving it, i believe people appreciate the speed and the certainty of these vehicles they complete a deal for a private company months faster and with more certainty. people will pay a lot for that executives, ceos, founders, entrepreneurs will pay a lot for you. >> how are you approaching your back to work you have offices around the world. you're working from your home right now, i assume. who you are you bringing back and when in terms of how you're

dealing with that? >> we have 20 offices around the world. we're doing it locally by what's happening in the offices and we're being very optional about it so we're going to try -- we'll see -- our main office in new york we're going to open it up voluntary work labor day if you want to come in, you can. we're working. it's been spectacular, as you know, the efficiency and the lack of travel has actually helped the deal environment. over the long-run, i think we're going to suffer on some of our training of the younger people, but for now, the momentum of your relationships is carrying through. the short answer is we've going to play it by ear and listen to what the scientists say about this and we're going to try to leave it voluntary and just make our offices available for a while. >> yeah. it's amazing we've gone virtual and the deals are getting done virtually. ken, thanks as always.

appreciate you taking time >> thanks, david good luck. stay healthy >> thank you you too. snap shares declining this morning as microsoft engages in talks to buy tiktok. julia has more on that move today. julia, snap chat is a collateral damage here? >> well, snap shares are down about 6 %. that's in part on the threat that microsoft to own tiktok could pose to its advertising business tiktok could turn the 100 million users into a major force in social media advertising. that could eat into facebook and google's dominance of digital ad market share and pose a new rival to twitter in addition to snap on the flip side, if the u.s. bans tiktok or shuts it down in the u.s., those users would be scrambling for content and would likely go to instagram and to snap which announced it's test nug ways to bring music

into snap chat including warner music group. tiktok has a range of deals with music labels central to driving its growth while a microsoft deal could pose more competition, particularly with snap, it would be considered a win for the ad agencies and the brands eager for another big social ad option beyond the digital duopoly we talk about so much >> thank you for that. when we come back, a successful restart for nhl even as major league baseball struggles to get its own season going. we'll talk about what's working so far when we return.

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schwab. - we did it!c) (crowd cheering) - [narrator] wherever you start, snhu is where you can finish. (crowd clapping) (crowd cheering) - here we go. - [narrator] and it's it. - [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it! - i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. a new month and there are big implications for landlords with numbers on new evictions. >> the federal eviction moratorium expired and the extra unemployment benefits are expiring and close to 30 million tenants are in danger of being

evicted. renters are on the lower end of the income scale and are seeing the job losses these are the states with the highest percentage of renter households who said they were unable to pay rent and at risk of eviction. in some states like new jersey that's half of all renter. in california and texas that's well over 1 million households over four months and close to 1 million in new york at risk of eviction that will ripple through the real estate economy which has been hit hard. avalon bay reported a rough second quarter the multifamily reit has coastal urban markets like new york city noted it has not started any new construction projects despite guiding $900 million worth for the year the ceo cited renters shifting from urban to lower cost

suburban or sub markets or moving in with family, and record low mortgage rates accelerating the need for single family homes and reducedd demand from corporate and student renters. all of this before the evictions really began back to you guys >> yeah. it sets up a dire picture for the coming months in the fall. thank you. when we come back, a once victim to what some called a cheaper copy cat version of the shoes from amazon, we'll check in with the ceo of all birds in a minute.

a late of companies in the pet food and supply space are hitting all time new highs today including zoetis and fresh pet which reports after the bell today. chewy also soaring to a record they have nearly doubled this year, up 95% that is likely a play on all of those people who are adopting furry friends during the stay at home orders. we'll keep an eye on these and other outperformers. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪

price action today largely being dominated. record high for the second day in a row, david, got to 446.5.

obviously a huge effect on the price waited down. that is something we will have to live with until the split in a few weeks. >> yeah, four for one stocks awe you point out. it is part of the reason i never talk about the dow not a market cap weighted index. it is just how incredibly and highly valued apple is in the suspect along with four orfire other names. >> it plays in obviously big tech, apple, amazon, huge beneficiaries here. you may remember it is a copy cat version of it's shoes.

we are following big tech's hearing on antitrust thank you for joining us >> so this whole sada during the break i was checking to see if the shoes were still on there. they are still on amazon i know you joined "squawk on the street" a few months ago where you said you could not really take any kind of legal action. they have double the number of lawyers as you have employees at your company >> well, i mean, if you click on the amazon.com page, ewe still seeing tons of copy cats they have a lot of market power with 50% of product searches coming through their site.

and the, you know, we're -- we get it it is a competitive marketplace. but if you're going to steal all of the design, rip it off, sell it as cheap as you can, our request, and we said it before, just steal the sustainability. we're a carbon neutral company we have a ton of great materials and we open source them. use them everything will be better. we even label our products with a carbon number so you can compare it you can see the carbon emissions for when we manufacture our product and you get to decide that when you're purchasing. what if amazon.com had every product show the carbon score of what was polluted while it manufactured each product. that would be monumental change, that would be a fantastic use of that market power in my opinion. >> in your standpoint not

allowing your products to be sold, as it worked have you seen customers defect so some of the cheaper versions in lieu of your own sneakers >> it's so hard to say that. you can look at the copies someone did that they are still, someone out there has bought it and they know it is a cheaper version we don't really they is a competitive dynamic. we just focus, focus, focus. we launched a running shoe, and it would take anyone to catch up with the innovations that we have done. >> have you been in touch with anyone in donk

>> i'm sure you watched last week's hearings, what did you make of that >> i sure did. i'm not an expert on those kinds of issues. we're in touch with our congress people locally and on a federal basis from a number of different districts and states we're not engaging on things like antitrust that were such a -- kind of a drop in the buckest here in the marketplace. we're trying to focus on what the core values of our company are which is focusing on playing our role and helping climate change >> how have some of your roles changed? have you seen a big tick up in sales as more people are staying home and not going into the office >> there is, at the very beginning when we had our first cases in the u.s. and i think there was a lot of uncertainty

we shut down our stores across the world. a whole channel of our brick and mortar stores, we had about 20, and we shut them down. when people realized they wanted to get back into nature. working from home, some of our customers who have the opportunity to do that and we launch running shoes and we start to really see pick up people in our core lines of the wool products like the wool runners, they have been great for at home. we have such a great value that we offer, and people are starting to pick it up it has been really good recently since that early part of uncertainty. >> i for one am a new runner in this pandemic with jims being

closed >> thank you guys, again >> i'm going to hand it over to you for the start of the 11:00 >> okay, leslie, don't go anywhere you'll be with us for the hour >> busy monday, and the week is busy, we have new bankruptcies, but mike, we're going to lane on tech pretty heavily for the first half of the session. >> yeah, that continues to be the trend. it seems that people are willing to bet the trend the market more or less got it right not just because they were defensive but they are beneficiaries. at this point it seems as if it is looking unstable. a little bit of stressed