it is 5:00 at cnbc and your top "five@5. tech looking for more gains this morning. one stock getting all the love as its market company closes in on the $2 trillion mark. bracing for isaias the storm building up speed. a live report from the eye of the storm coming up.

no nationwide lockdown that's the message from president trump as the feds deal with a growing list of hot spots around the country and why the white house is saying it wants to cut any deal between microsoft and china's tiktok it wants a piece of the action tuesday, august 4, 2020. good morning i'm dominic chu in for brian sullivan today kicking off your tuesday morning with some stock instability. the dow down some 40 points, the nasdaq down 40 points as well. the s&p off by 18 points the market rallied after capping off a win streak the dow rallied more than 400

points as you are seeing in this time lapse from yesterday. the index hitting another all-time high with the 29th record close of the year so far. the tech sector broadly higher closing in on its all-time high as well. the s&p technology center up 24% gains year to date sales force, microsoft, facebook, take two interactive, qualcomm apple, after a more than 10% gain on friday closing up another 2.5%, the stock is now just percentage points away from hitting the $2 trillion market cap mark the price to watch here before that four-for-one split.

watch $677 that's the number that gets them to $2 trillion and gold, up another nearly one half of 1% $1,994 an ounce. green in asia overnight. a very mixed picture in europe you can see the shanghai composite down the hang seng sang up. some tractional losses in the dax and the uk and the cac in france up nearly 1.5 of 1% right now. new reasons for optimism in the united states. president trump rules out another nationwide lockdown, plus the east coast braces for the first category i storm of the season >> good morning, the covid outbreak in the u.s. appears to show some signs of slowing

reporting fewer than 50,000 cases for the second day and lower death count with a string of days with more than 1,000 fatalities reported. california reported less than 6,000 new cases for the first time and florida reported fewer than 5,000 for the first time since june new figures come as new jersey governor is retightening restrictions on indoor gatherings to a maximum of 10 people down from 100 president trump said a virus vaccine may be available to the public before the end of the year the president adding another nationwide lockdown would do more harm than good. outside of the virus, the u.s. national hurricane centerdown grading isaias to a tropical storm.

sustaining maximum winds of 65 miles an hour, down from 85. isaias is located 40 miles south, southwest of wilmington, north carolina >> we'll have a live report from north carolina at the bottom of the hour the nasdaq coming off the 32nd intraday high and 29th record high close for the year joining me now, rob morgan i feel like it is a broken record every time we come on, we talk about a new record high especially for the nasdaq. what exactly is going on >> well, dom, in some ways, the tech sector is kind of immune to the virus. unlike other sectors that require customers to cally come into stores or restaurants and the tech sector has gotten

visibility earnings growth obviously investors are bidding up the stocks. at the same time, it's really by far the most expensive s&p sector at that point, you probably noticed, i don't have an overweight, it is a speeding train that keeps chugging along. >> if we talk about the fed being a tail wind, does that mean for things to stay the way they are now, the continued path to the upside? >> absolutely. you hit the nail on the head the fed made it clear, they'll be able to print money until those mandates are met we are a long way from either of those being met. the fed will keep printing money. that is great for stocks the path of least resistance is

up >> we talk about the fundamentals some of the covid stocks that benefit because we are working from home more is this the case where you can make a fundamental case that it is worth vesting in right now. valuations aside we know they are rich. >> on a case-by-case basis, absolutely there are a lot of companies out there banging the drum they are covid resistant from a business standpoint. technology has a lot of those. there are other sectors as well. >> what other sectors are they >> right now -- when i'm looking at sectors, i'm not necessarily factoring in covid i'm looking at sectors

attractively priced. right now to me, that's really staples, financials and telecom. those would be my three favorite >> one last thing, i'm looking at 10-year yields now. 54ish basis points is it a cause for concern with no price ahead >> it is hard to say what the fed is doing right now a lot of the rules of the yield curve, we are reappraising them. certainly, most of the companies that have reported earnings and being beaten by an 84% margin, they've lowered expectations that the economy is coming back but will be below where it was even fed chair powell said what it was

there is growth out there but to the slightly ratcheted level showing a big decline there. always good to get your thoughts we appreciate it we head to dc where lawmakers remain add an impasse over the next round of relief and why president trump wants a cut of any deal between microsoft and tiktok and why a disproportionate amount of african-american businesses are being shut out from ppp loans. we'll talk to several firsthand after this what happens when a wireless carrier

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we continue to watch developingdetails around the sale of tiktok to microsoft. reporting this morning, it is not just microsoft but other technology firms in talks with tiktok owner bytedance two other possible contenders coming after new comments with the president over comments from microsoft. eamon javers with more good morning >> the president wants the money for the u.s. treasury but there is no legal basis or predicate

that the u.s. should get a payout the president, however explained this twice yesterday here is one of the instances here is how he explained his logic about why the united states government should get paid here. >> whether it is microsoft or somebody else or the chinese or what the price is, whatever it is, the government should receive a large portion. because we are making it possible it is like the landlord and the tenant we are sort of like the lease. we make it possible. tiktok is a great success but a big portion of it is in this country. >> we'll see what microsoft says about is that. there is no legal forcing mechanism for the u.s. to force

microsoft. microsoft would pay bytedance in order to buy tiktok. microsoft might offer up something to the treasury at some point we'll wait for them to comment on that. >> while we have you here, what is the latest on the virus aid talks coming out of washington, d.c. are we any closer to a deal getting done >> when you look at the rhetoric needle, good to bad. we went from good to bad, that was sort of back up again. no specifics though. we did have a meeting from mitch mcconnell yesterday from white house staff. that did seem to have gone pretty well. saying there are some areas of general agreement including the ppe extension for small businesses but they are still

spread apart on these negotiations even as american workers have seen that $600 bonus unemployment go away >> the hot spot in washington, d.c. still on deck, grounded. why shares of richard branson's virgin galactic may not be ready for liftoff yet and bp, made a dramatic move to its dividend. after this >> announcer: today's big number, 300% that's the increase in tiktok daily active users in the u.s. over the last 18 months. the app wasdo dnldeowoad 130 million times in the u.s

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right now, we are watching a live shot thereof portsmouth, virginia not far from where hurricane isaias is active we'll keep a close eye on that it was down graded earlier to a tropical storm after making land

fall there shares of virgin galactic lower after they reported another quarterly loss telling investors it does not expect to fly until the first quarter of next year after it concludes testing. adding it plans to raise $460 million. shares in aig lower after q 2 profit falls aig posting earnings of 66 cents per share topping estimates. those shares off 2.75% and shares of pb trading compared to a net profit and the

company cutting dividend in half the first time it has cut its dividend in 10 years you got to go back to deep water horizon for those cuts still ahead on the show, digging in to the plight of black-owned businesses and why they may be shut out of getting ppp funding. we'll talk to a few business owners and the first-hand experience there we are back after this just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪

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stocks fight to keep the early action going as technology sector once again fuel the market rally president trump adding you in stipulations to a potential microsoft deal saying the u.s. should actually get a cut of the final price tag and isaias making landfall overnight. we'll get a live report from the storm's epicenter next you are watching "worldwide exchange" on cnbc.

you can see hear the nasdaq is lower by a similar point amount off seven points off the open implied. remember, all of the averages rally after capping off a four-month win streak yesterday. higher by more than 200 points to finish the day. again, all about technology and the nasdaq another all-time high seeing another record close of the year 29 of them the tech sector closing broadly as well from the sector. remember, the biggest sector in the s&p 500. names like sales force.com, microsoft, facebook, take-two interactive and qualcomm taking highs yesterday. leading the charge, apple with more than 10% gain

closed up another 2.5% yesterday to another all-time high and the stock is percentages away from hitting the $2 trillion market cap amount the price to watch there before the four for one split goes into effect right now, the price you want to watch for is 467.77. we cannot forget about gold, another all-time high. indicating about half a percent higher $1,993.60 the last trade there to breaking news on isaias slamming into the coast of carolina and being downgraded from a hurricane to a tropical storm. jay, as you are looking out there now, i don't see a lot of rain but we know it has been slamming the carolinas now

what kind of damage have you seen >> no, you are right we have downed trees here, limbs as well. let's get you the current conditions still getting wind gusts at times. thankfully the rain has stopped. this storm making land fall about 40 miles south of us with a lot of strength up the east coast. >> violent surf, driving rains clearing a path to the storm early path evidence to the pow you are of isaias. flash flooding along the shore line with water expected to build and move inland. >> be prepared for a lot of rain as much as seven inches in some places rain combined with high winds can lead to flooding, downed trees and downed power lines >> even in areas, familiar with

the devastating effects of the storm, this hurricane is different. >> when you are already feeling concern and strain from the pandemic, you hope this is not the stick that breaks the camel's back >> shelters where evacuaties will have to wear masks and social distance. >> the shelters will screen for covid. if someone has symptoms, they'll be directed to a sheltering option for isolation or medical attention. >> the crucial path focused on prep the fast-moving storm expected to hit communities along the carolina coast to maine. >> the system downgraded to a tropical storm the big concern that continuing

rain that will cause flooding in many communities another problem is the possibility of tornadoes in fact, the system spawned several in this area overnight >> jay, we are showing graphics about the storm's anticipated path it is moving up the gut of north carolina to virginia and washington, d.c. this is not a storm forecasted to go out to sea. >> it will go right up through new york city and western massachusetts as well. what kind of weathershould we expect in the northeast overall? >> you are absolutely right. it is going to linger at least another day and a half it will slow down a bit. that is an issue flooding is a big deal with this storm. the wind is intense as it came across the shore line. it will get a better idea of the

damage once the storm comes up moving forward, you'll see a lot of heavy rain. coming way too fast for the area to handle. moving through the north to lead through participation. they are low on rain this water will have nowhere to go flooding is an issue >> it is a concern, stay safe. thank you very much. now to the latest situation involving tiktok cnbc's own eunice yoon reporting that it is not just microsoft but two other technology firms in talks with tiktok's owner bytedance after president trump arguing microsoft should buy all of tiktok and the government should get some of the proceeds from this particular hypothetical deal. >> whether it is microsoft or somebody else or what the price is, the united states should get a very large percentage of that

price because we are making it possible without us, i use the expression, it is like the land lord and the tenant. without the lease, the tenant doesn't have the value we are sort of in a certain way the lease. we make it possible to have the success. tiktok is a great success. a big portion of it is in this country. >> president trump didn't explain precedent for the action despite all of this, reuters will be overseen over the committee. something known as cfius under new rules, they can collect filing fees under cfius refew but they can't exceed $300,000 let's discuss all of this with corporate finance editor for the financial times. when the deal first came out, we

thought, if anyone is going to buy this, it would bemicrosoft is this a deal that would make sense? >> there are so many different perspectives if we are going to start with microsoft, the attraction for them is a move to social media on the back of an incredible resurgence this is satya nadella elsewhere to do deals and add to parts of the business of microsoft which seems to be working well as share prices are the baro meter of that. caught people off guard with the strength of the business generally to move into the space more fraught with more attention and scrutiny from the general public and congress. it seems to be an area they want to stand

they've shown their hand it is fair for us to say, there are reports of others being interested that by no means we'll end up with a deal at the end of this >> you talk about the perception of the synergies in this i remember growing up being an office 365 user. i had word, excel, power point, internet explorer. all of these work together what does tiktok do to the eco system i'm trying to picture a world where linkedin is married to tiktok does that have to happen >> no. it doesn't it is more about the value the reason why everyone is sensitive about tiktok is the enormous information generated the amount of information it produces it seems like cfius is unnerved

about that being in the hands of the chinese government my understanding is that the concern is not about data leakage but the enormous power you have if you have 100 million americans' data coming into the system that's the specific risk if you are a company and we live in a world where people like to run around saying data is the new oil. the value of that is something if that is an sorted with x box, how can you build a smarter web around all of us and then monday tie monitize us. >> i joke that amazon probably knows more before me than my family because of the data it gathers around me.

this is a time where they are looking to protect society can this get done allowing other big technology firms to made acquisitions like this >> my feeling is that big tech is so powerful right now as the crisis has gone on, it only becomes stronger and further speed up the shift in power to them that they'll 100% be using power to do deals microsoft and tiktok is an example of that. we'll see more and more examples of this where big tech is doing acquisitions there is no reason to think that these companies are, the four or five more powerful companies in the world are going to slow down >> huge acquisitions like this

or smaller minority stakes like google and adt always good to talk to you thank you. coming up, black-owned businesses and the challenges of covid-19 we are talking with two business owners on the hurdles they faced keeping their doors open amid the outbreak "worldwide exchange" is back after this

welcome back, the federal

reserve is said to take a fresh look at the impact on black-owned businesses in america. showing that those businesses were largely shut out of ppp funding. >> businesses have until august 8 to apply for funding if they have not already done so even with this, main street is being decimated. thousands of businesses have already shuttered with 7.5 million facing the same fate black-owned businesses were even harder hit the number of active owned black businesses plummeted down 19%. the number of active businesses overall fell 8%. latino, asian and female-owned businesses were also affected. the center for responsible

lenders showed white-owned businesses were more easily able to access credit at double the rate of black-owned businesses the program favored those with already existing business relationships and first-come, first-serve. and black-owned businesses were more solo owned. the demographic application was voluntary because the sba said lending decisions can't be made based on demographics so we don't have a full picture. something critics have seen railed against and want to see changed in the next wave of aid. hopefully shedding more like on this really important issue. >> absolutely. the resource allocation a key point. stay with us i want to bring in more, ron carson, the owner of cool action

suits and the owner of the eateries here in the new york city area. also the founder and owner of the marketing and consulting group. gentlemen, thank you for joining us and kate, thank you for being here let's talk to you, first, ron. the notion whether you feel as an african-american business owner that you have been adversely affected relative to everybody else for what has happened since covid-19. >> good morning, dom my business, the cool action suit is a little bit different because we had an exiting infrastructure cool action suit started because of my long history in public service.

i wanted to make a difference in the world and be the change i wanted to see, to the words of dr. king after leaving the white house, i wanted to build a business to build the racial divide between african-american community and law enforcement community. we had an existing infrastructure with federal law enforcement officers who i worked alongside with. during this covid-19 challenge, we already had that infrastructure that wouldn't go away with federal law enforcement officers, suits are like a natural resource kind of like food, shelter and water. you need a suit if you are a service agent or serving a cabinet official or member of congress during this time, we didn't necessarily feel as adversely affected as some of the other

companies, so in that regard, no in another regard, absolutely. you can see the challenges that affect businesses. >> ron, we showed a graphic that says 80% of business has declined because of supply chain and business 80% drop sanjay, you here, this is something we talk about a lot. hospitality, leisure and travel has really been hit. as a small owner and one of african-american decent, do you feel this particular pandemic has hurt black restaurantors more than others >> absolutely. i am based on awareness for the community. the majority of people working for me, 65% of them are african-american or minority

decent that being said, now we only have 30% of people who can work. our business has gone down to 30%. i know they do offer the ppp it is only forgiven at 65% being said that we have -- the majority of people working are at 20%, 25%, that's all we could cover in terms of the people working in the restaurant. i feel as though we are specifically targeted at times specifically targeted at times through being an african-american, awareness and change is what it is all about i try to show that and advocate that for the minority community as well. >> i'd love to ask you, the industry at large is asking for a specific carveout in the next

aid package. what has it been like in providing outdoor seating and how expensive has that been? >> it is not that expensive but the problem with that is that the governor has said we have to maintain 100 feet of social distancing outside where they are providing us no leeway we understand. trust me, i'm well aware of the volatility of this virus and nobody knows what is going on and how difficult it might be. but, how can we control a neighboring restaurant literally 20 feet away from us and having their clientele in front of us passing by with open containers and we are mandated to control that it is super tough right now for restaurants to gauge and police and patrol people.

>> ron, let's talk a little about what you think the government can do, the business community at large to bring more clarity to allow your business to do better what are you looking for to help you stay afloat or thrive to get through this whole pandemic? >> that's a good question. this has given us a chance to think strategically and co-lab rattly i've reach the out to the senators of my home state and the executive branch to co-lab rattively work i'm a made in america. we make suits in our normal every day life during this time, let's make uniforms united states postal service, tsa agents can benefit from a

uniform they can move freely in and be comfortable in at all times such as the cool action suit, which is the world's first patented completely moisture wicking fabric suit for men and women. the fabric is transmittable to ups, psa, fedex. i've reached out to say, hey, so that my business cannot only survive and strive, help me make in roads to the postal service and tsa and others i've reached out at this point, it has fallen on deaf ears. hopefully someone is watching right now to reach out

>> sanjay, we'll give you the last word. what is your frustration, what could help you the most to make sure your business comes out on the right side of things >> i would say planning. one day you hear churches will be open on easter, the next day, you know you can have side walk permits and then they change the regulation the biggest thing for me is how to plan. if you can't plan, you can't hire the right capacity. planning for me, if we knew what was going on within the next two to three months, that would help the most, to be quite honest >> a lot of stuff going on with covid-19 and small business owners ron, sanyaj and our own kate rogers, thank you as well. next wednesday, august 12, join cnbc small business

playbook virtual submit with facebook's cheryl sandberg and others providing small business owners resources to survive and a path forward to thrive tomorrow go to cnbcevents.com/small business playbook. on deck more of the stocks you need to watch today including the video game publisher hitting new all-time highs that name coming up next you can watch or listen live on the cnbc application we look down on a live shot of times square in new york city.

a look at some of these stocks on the move

shares of bayer down after the company reported an $11.2 billion loss the german-based pesticide maker with loses due to the round-up weed killer. take-two posts a blow out q 1. shares up nearly 6%. twitter warning of a possible $250 million fine from the federal trade commission accused of misusing personal information to target advertising. those shares down 1.5% market showing some signs of stability. it is not just stocks but gold

continuing joining me now is someone who got in on early levels saying there is no room to run but is it a bit more cautious tim, thank you for joining us. i mentioned the can't stop, won't stop nasdaq sector early this morning not just the idea that valuations are up there but the momentum doesn't seem to have any sign of slowing down is that something to be proud of or worried of in the u.s. markets? >> it is a concern it means we are really talking about one sector here. it is not a healthy situation or telling us we have a broad

advance that is starting to anticipate the extension these are the small group of six or seven stocks that are dominating in this environment >> tim, i only ask because it seems we've been speaking for years now about a handful of stocks on the overall index. yet, the market keeps making multi-year highs >> there is skepticism it has been there a while what is to say it doesn't keep going? >> that's where we are with our allocation with equity, bonds

and market weight. we need to see which way it weighs here. as we go to a multi-year bull market, we'll see a break out. it is true, the nasdaq goes into a market high. if you look at the breadth of the market, stocks and markets around the world fewer than half are above the 50-day or 200-day averages that is not a sign of broad-based event. earnings yields have gotten new lows those markets have valued again if we don't see that confirmation come through broadly. we'll be vulnerable to another set back we've called this a secular bull market a lot of doubts have entered the

picture as to whether or not this secular bull driven by the inflation theme and massive amounts of liquidity we have had an impact in the past so far, this remains a big question mark. as your graphic showed, the nasdaq is at a record high if you look from the high in january 2018 we actually still have a negative return which is more symptomatic of a bear market >> one place we have seen this is in the precious metal's market is it just because of that or other reasons why the precious medal could continue with its

run? >> that's right. we turn bullish in 2019 in terms of gold. we have overweight bonds and the factors that have been the economic weakness that kept interest rates in a long-term decline. real interest rates continue to fall if you look at the times gold went to a high, we did go through a consolidation after that subsequent to that, a triple digit run higher from when we got to that. all of those factors and we have another positive for gold, that is the breakdown of u.s. dollar. gold takes on the role of the u.s. alternative the dollar has broken down and

entered a decisive tail wind >> thank you very much tim hayes, great to get your thoughts have a good day, sir. >> that does it on "worldwide exchange." "squawk box" picks up market coverage after the break an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs, feeding america is the largest hunger-relief organization in the country. join morgan stanley in supporting feeding america and your local community food bank. ♪ and welcome to campunity tonsafun on xfinity! it's summer camp, but in your living room. learn how to draw with a minions expert... how to build an indoor obstacle course! plus... whatever she's doing. and me, jade catta-preta. the host of e's the soup! camp tonsafun. it's like summer camp,

but minus the poison ivy. unless you own poison ivy. in which case, why? just say "summer camp" into your xfinity voice remote to join.

good morning new developments on tiktok two other companies competing to buy the u.s. part of the company. the president says he expects the u.s. to get a cut of any deal to buy tiktok and the track of the tropical storm isaias it is tuesday, august 4, 2020. "squawk box" begins right now.

good morning welcome to "squawk box." i'm becky quick along with joe and scott with us today. was that your first day really to do this from home >> it was. now literally feeling at home. >> we are pleased to have you here let's look at the u.s. equity futures. yesterday was a huge day across the board. the dow was up about .9% the s&p up by .7%. the highest level since february