made during the pandemic what he is proposing is announced. you a it is thursday, august 6, 2020 "squawk box" begins now. good morning welcome to "squawk box" on cnbc. i'm becky quick with andrew ross sorkin with scott wopner joe is off >> it is good to be back in the city at the nasdaq my first sojourn to return we had an incident i was up in connecticut. we lost power and internet trees downed on both streets i couldn't even leave.

there was an endeavor to get to the city yesterday but we were landlocked yesterday, drove into the city under the trees. it was a little scarey we are back and it is nice to be here it feels like home >> good to have you back, andrew this is the situation that we probably haven't given focus it deserves still millions without power 1.4 million in new jersey without power. i know connecticut was hit worse. that storm even though a tropical storm, not a hurricane, stronger than anticipated. the wind event and damage significant. >> i appreciate it >> still trying to dig out from that today a lot of people that will be without power for days

starting with the markets this morning. the nasdaq on another record six straight games it closed just below 11,000. just north of 10,998 you'll see this morning, us equity futures are not pushing above the 11,000 mark just yet six days in a row we've seen gains. this morning, indicated down by 20 points. the fourth day of gains for both the s&p 500 and the dow. indicated down by two and a quarter points we've been watching the treasury market and incredible treasury yield. under some pressure and the note now is yielding 0.528% >> good morning to both of you we are watching big events in

washington we have an update on talks now for another stimulus bill. lawmakers and trump officials left without an agreement. after the meeting ended, chief of staff told cnbc the president would take executive action to extend jobless benefits and eviction moratorium if they failed to strike a deal. saying democrats are not walking away but there are still wide differences. we continue to watch that story. if they can't get a deal today or tomorrow what the president will do. they need to come to an agreement. >> they do -- >> president trump says he's -- sorry, becky >> i would say the american people think they need to come to an agreement. the administration thinks that

there is still some really difficult distances between the two camps at this point. not the $600 or the $200 still a lot of issues outstanding. that has everything to do with liability for companies if someone comes down with coronavirus. also looking at states and municipalities the president will extend some of this by executive action. there is still question about what power he would have and be able to do on that front especially when it comes to unemployment benefits? >> the calculus is how big this is going to be

inside the republican party, not all of the membership has the huge package again there are interesting articles about the tough decision and the deal he may be willing to make with the speaker, knowing that some within his party might be against trillions more added to the deficit. >> ron johnson, the senator is really standing up saying, no. we'll be speaking with him later. again, mcconnell does not have his own caucus why you see the difficulties extending and why there may not be a deal by friday. >> andrew, the clock is ticking. the market has been patient. obviously. we are talking about the market going up about every day the question is how long is the market going to remain

>> i don't know. i'd love to see just more targeted efforts i feel like -- when it comes to how much money is being spent, none of it is targeted it is a one-size fits all. you can look at different areas. liesman and others have talked about how to do this and we haven't gotten anymore sophisticated. getting to a place they might be in agreement >> part of the problem with that is that, every one of the states has a way of playing that out. a lot of those systems are not as sophisticated as they should be >> i hope the lesson -- i hope

we'll get a federal system something better for all of this computers for giving out money when we need it. we are good at taking in money we still don't have our act together anyway president trump says he's in favor of a new plan to give another $25 billion to struggling airlines. the president's comments come after more than a dozen republicans support aid continues. package already has support from the majority of the house. here we are talking about who is getting bailed out so to speak and who isn't. as we are in the mist of this fight as people are out of work and needing benefits of their own. we are having a conversation again. >> this goes to the issue and i used to rail about it early on i always thought we would have

to give more money to the airlines not just the airlines. is this an all employment package? the share holders will be saved. i'm not against those. we are trying to save those around the country but we need to decide what it is we are doing are there special classes of share holders we are deeming more important and are taxpayers going to get something for it? those are reasonable requests to be asked >> andrew, it is interesting airlines needless money than anticipated. there have been share holders willing to step up and not only buy the stock but buy bonds. >> if that's the case, we shouldn't give them money. if there is a private market, great. a public market, great

if we are going to step in i don't want to say we should be europe but looking at what the europeans did with their airlines and they took a piece >> my guess would be >> and whether the share holders would benefit. warren buffett with shares he had a view that this would be a challenged industry for a long time that economically was probably right but maybe wrong in the short term insofar as i'm not sure he preched how much government help or what was going to happen and that they should be the one supporting them >> my guess is that government funds would come with very strict rules and restrictions. you have seen many companies

talking about how many people they plan to furlough and layoff come october 1 my guess would be any additional funds would come with very strict restrictions. that is something in the past the airlines hadn't wanted, so they went out and tried to raise their own revenue first. these moves today. these are short-term things. not long-term moves. once they get the deal and the details that come with it, it may be a less than enthusiastic reaction >> these airlines are burning through so much. you wonder if this industry is getting the can kicked down the road to the inevitable you can't keep throwing money at a problem that may not look the same on the other side of the

pandemic >> this is the issue for all of the money. if you told me there is a business that is not economically viable for the next 12 or 18 months. are you better putting that company in a bankruptcy protection or mode that keeps it going during the challenge >> the thing is we don't know what will happen in the next 12 to 18 months >> that's the hard part. you want the airlines working so when the economy is ready to go, it all works if they are to go into bankruptcy protection, can they continue operating the same way. i don't want anyone to go bankrupt it is a terrible thing but there is a real conference about taxpayer money

we have to tell you about other news facebook removing a video interview president trump posted in which he said, quote, children are almost completely immune facebook spokesperson saying the video violated the covid misinformation policy. the president campaign fought back saying facebook is showing incredible bias against president trump. facebook's policy that if you say it in an emfatic way, they are likely to take it down, which has not stopped people from adding modifiers. so i'm surprised the president

didn't do it in that context >> it was a video of something he said on fox news. >> right if he said it that way, it would have been deemed different which is such a strange phenomenon >> if you think we are having this conversation now. what are you 90 days out from the election wait until we get closer these social media companies are in an interesting spot to see the willingness that they have between now and then to take steps like they did now and the calls that will be coming. the ones you just read, andrew the backlash of either twitter or facebook or somebody else steps in and removes a post. >> it is going to be heating things up. also another issue taking place today turning up the heat.

senator bernie sanders is now renewing for his call for a crackdown on billionaires. he tweeted last night, i will be introducing legislation tomorrow, meaning today, to tax the ob scene wealth gain billionaires have made during the public crisis. over 30 million americans have seen the $600 a week unemployment benefits. meaning 467 billionaires have increased. while amazon is denying sick pay and providing protective equipment, jeff bezos is up. calling out the walmart walton

family and elon musk and then compared to what they've done with some is workers along the way. taxing the wealth made, we could guarantee health care for an entire year and billionaires would sftill be able to profit gains during the most difficult season since the depression. i doubt there is anything that comes of this legislation when he brings it today it is running a sentiment that runs through a major part of the situation. >> if we are on quote/unquote war footing how to pay for what we've done we put one of the most important corporate insurance policies

together the benefits have been the share holders. we talked about the idea that employees have given up a lot during this. often times showing up at work, we showed jeff bezos showing up to work. showing up to work at amazon or walmart. that is their contribution a lot of us have been blessed to work from home and to be of means, if you will i'm not a billionaire. i wouldn't argue against higher taxes to pay as an offset for some of this as quote/unquote a contribution, if you will, to the country in the same way that so many front line workers have contributed. one man's view. >> look, higher taxes are coming that is inevitable based on the amount of money we

are spending we are talking trillions coming out and that will have to be paid back at some point. one thing sanders posts and doesn't take into account is what companied like walmart have done they've increased pay. doug mcmilan has been doing that for years. raising base pay there and making sure additional benefits come in. i see his point. it is a valid point. because of the actions of the federal reserve and studying things, wealthiest people have gotten wealthier no matter which way the election goes, they have to find a way to repay. >> this goes to what we've been talking about. this great divide between wall

street and main street and they turn on cnbc and see that we are talking about the nasdaq at 11,000, you still have this incredible divide and horrible income gap and income inequality that the market has been able to surge back having a discussion of washington able to agree on a stimulus package that is this incredible disconnect of bernie sanders people saying, it is absurd when saying the ee could be my is still in the tank. >> part of the reason you hear this decline is because you hear about the layoff coming. >> i'm add companies like walmart, amazon, they've stepped up but they were beneficiaries

of government policy beyond the fed. in so many parts of the country, states were locked down. small businesses were told, you have to be shut. we effectively advantaged walmart, amazon over everyone else yes, they stepped up to the play and served but there is a question to this walmart and amazon should be supporting the small businesses. >> i would say, what you brought us earlier this week is part of what they've done. every one of those businesses has said they'd like to see support. >> when they pay for it on the other end of their taxes then i think they'll really support it. we'll see. anyway, we have to come back on the other side of this break,

new jobs data. what you can expect. the squawk planner ahead take a look at gold. prices continue well above $2,000 we return right after this [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know there's a 30-minute limit, right? tell that to the rain. [ beeping ] for those who were born to ride, there's progressive. [ beeping ] pampers the #1 pediatrician recommended brand, helps keep baby skin dry & healthy so every touch is as comforting as the first pampers. the #1 pediatrician recommended brand

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looking for another 1.4 million workers to file for unemployment that would make the 19th straight week for claims above a million people tomorrow, that big monthly job's report from the government as well >> ahead of today's data, we want to get a check on the markets. dow up about five points nasdaq off about 23 points the 10-year yield hitting a new low. treasury market telling a different story than the stock market joining us now, chief investment officer of wealth and investment management and chris white, ceo of bond click. i'll go to you, chris, first

>> what you've said is markets are divergent. we are looking at the difference of stock market and bond market. seeing these two rallies in tandem committing capital to buying corporate debt, treasury debt, mortgage debt and not forcing graces higher. this is what we are seeing now this is a huge government buy. >> if chris is right it is hard to say he's not the question is, does that at

some point tip the hand? >> at some point it will yields fall, bond prices inch higher i was looking at the municipal bond market. looking at that level. there is no volatility as the fed leans in to keep interest rates low or where they are. the interesting point has been real yields. those have continued to fall those have inched rates higher that has been in hard assets predominantly gold sill skrer prices are up

lumber is up copper is up creating rallies and equities, bonds and hard assets. i'm sure you get calls all the time do i put more money into the nasdaq now >> we like technology here communication services speaking on the s&p, down 6%. you can see where the rest of the market is not participating. those companies are producing good top line growth is that a multiple expansion story >> both.

they are expanding undeniably. the best sales growth and margins. you've got to go where growth resides. >> chris, do you pull your hair out, if you will, saying to your self what is going on in the equity market? >> no. it doesn't there is something not being discussed consistency enough what is the long-term impact of the fed impact what is causing investors to have to go further and further out to get a decent return on the yield. the risk is being held on the pension funds, 401 k, 529s like the fed hasn't seen before with the liquidity, in the end,

it is starving the investor. we'll see funds moving forward where they are not able to hit their yield and we have a crisis on their hands in place of the short fall and what they have. this is something that takes a long time to manifest. fed intervention in terms of keeping interest rates artificially low has been going on since the 2008 crisis now they've pushed their foot a little further down on the gas pedal and creating a situation where people are unable to see any meaningful return in their portfolio. >> okay. thank you both guys coming up, america's largest mortgage lender to make a market

debut but mortgage pricing above the expected range take a look at shares of roku. company saying uncertainty in the ad industry will linger through the second half of the year overshadowing. sales soared as more users logged oton that platform we'll be right back. by spreading any misseds cp usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa.com

time now for our executive edge, the manhattan real estate market was supposed to rebound in july. that hasn't happened and now there is a glut of unsold apartments >> sales contracts falling 57% compared to a year ago all price segments take ago i hit. co-ops over five million the big concern now is all of this rising inventory. now at the highest level in almost a decade with a 17-month

supply compared to the eight-month supply that is typical. pricing is really hard to determine. new developments are cutting the most the getty building are cutting prices in half compared to the suburbs that saw a record july. sales in the hamptons doubling west chester more than doubling. in connecticut, you saw increases of over 70%. you have got some towns in connecticut seeing the average listing period for homes now just under a week. we'll see if this lists a pause. this move accelerating in july close to settling down >> which is why you have the

governor of new york almost pleading yesterday maybe some of it was tongue and cheek. almost pleading new yorkers to come back to the city. >> yes he said please come back i'll cook. the question is with all of the families moving out in march, the question of coprimary residences many of these families may end up more living outside of the city but keeping their manhattan homes that could impact taxes and overall value and the vi vitality of new york city. >> robert, we are still wondering what happens with taxes on that front

a. a lot of people working in the hamptons and hedge funders will argue you have to pay if you are in utah and have to pay, the laws are clear if you are a new york state resident, no matter where you work, you have to pay income taxes a lot of people saying, look, i'll just stay out here because schools are not going to open, so there is less incentive and an dooring in new york >> thank you we'll talk to you soon

when we come back. the latest on the pandemic and the efforts to reopen. we told you about the first college football team to scrap its season more on the prospect for college sports after this. as we head to break, we'll look at yesterday's s&p 500 winners and losers as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t...

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good morning welcome back to "squawk box. nasdaq looking to open lower by 35 points whether we close in or not on the nasdaq and the s&p 500 off about six points uconn canceling the football season making it the first sbf team to opt out. going to jabari young, sports reporter for nbc so much going on the nfl optout deadline. major league baseball sending

out a memo as it tries to keep its season a fleet your beat is busy as ever. >> welcome to coronavirus sports related. this is how it is. no vaccine people are calling for sports to get back there is no skipping around it you can't sugar coat it. i think uconn has opened the dam. looking at college football. talking to a lot of people you get the feeling uconn has set the bar and other big time programs will follow how can you go forward with the season with kids in a public

setting. what happens if a kid contracts the virus. long-term, what does that do i'm not sure the ncaa wants to see that risk. i think uconn set the bar. we'll see who else follows >> i mention the nfl deadline today. what do you expect between now and the deadline >> talking to people and agents around the league. the younger guys are going to play when you get to the level in the nfl, rookies, you won't see a lot of those guys opting out a lot of veterans are concerned. concerned about opting out and what the ramifications will be if they did that this is a league with a black ball label to it we have seen what happened with

colin kaepernick it looked like he was black balled a lot of players are fearing, if i opt out, what does that do to my future revenue? will i get black balled? i don't expect many big time names. right now -- that can change but i'm not hearing any big time names opting out so the nfl season will be under way. >> really the discussion how difficult it is outside of a bubble to hold these sporting events the nba and nhl have for the most gone off without a hitch. the games look great, quality is good, the number of cases is down we are not talking about covid outbreaks in those sports. >> it is easy to say that.

the nhl and nba, it is not fair. they've not taken all of the teams in the bubble. football and baseball. football can possibly pull it off. baseball and even hockey, that's why they are in canada they have an infrastructure problem. these two teams are just starting nhl, nba are damn near done. nhl, nobody tested positive. that's a good thing. you've got to give them time to get themselves together. if a month or two passes and you start to see cases, i'll be the first one on the show to say, cancel the season. it is not worth it right now, it is about a week and a half when you call for sports to be back in america, which is very

important. we now say sports is a part of our lives. sports and coronavirus cases you have to plan for this and hope nothing else bad happens. >> i'm not judging anybody but highlighting the differences that exist >> talking in general. we live in a social media orld >> yeah. we'll see. thank you. have a good one. andrew a lot more coming up on squawk the nasdaq continues the record move higher closing a hair under 11,000 we'll talk more about the names leading the way to that milestone next and the debate you do not want hn miss. jo hope bryant and kevin o'leary on the stimulus debate we are back after this we're carvana, the company who invented

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welcome back to squawk rocket companies raised $1.8 billion. below the $2 billion ipo earlier. the largest mortgage company in america. record volumes in march, april, may and june because of historically low rates sparking people to refinance. this company started by dan gilbert who has done so many wonderful things in detroit. owner of the cavs. we'll talk about that in a little bit a milestone for that company becky. that's right

we'll have more on that coming up in the meantime, we are talking tech let's look at the biggest gainers so far this year lead by zoom and tesla and how much higher the index can run right after this even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

shares of barb bausch health are surging. they're planning to spin off their eye care unit according to the "wall street journal." the journal says the deal could be announced as soon as today. becky? >> scott, thank you. the nasdaq coming off its 31st record close of the year. just shy of 11,000 in fact, it actually pushed above 11,000 for the first time ever in trading yesterday but closed a point and a half below that 10,998 .40 of a point it is a remarkable run for an index that took a hit in march and is up 23% for the year paul meeks from the wireless fund and independent wealth solutions. paul, you've been watching this for a long time. at this point you're looking for

any tells, any signs that this incredible run could be coming to an end. what are you on the lookout for? >> that's a great question we know the fundamentals are superb when you take a look at the quarterly reports from the major four or five tech companies and their guidance going forward that it was even better than the wilest imagination of the bulls, but at some point you have to worry about valuations i do that all the time what we're referring to is when you have companies that not only beat the numbers, they beat them soundly and they give very strong guidance, yet the next trading session, the next couple of trading sessions the stocks weaken that might be a tell that even for the bulls too much is too much with valuations i'll give you a good example a couple of days ago activision,

atvi announced their results no surprise they were superb and yet the next day, yesterday, the stock drops 3% if we see more of those, particularly with the marquee names, then they start to get worried. >> paul, what do you think investors are thinking with that just that it doesn't matter anymore? even though you're putting up good numbers, that's all been baked in what is that tell telling you in terms of what investors are thinking >> i think it's partly that. also, investors are going to have to differentiate between who is going to continue to do well on a structural basis and who are being lifted up by what hopefully is short term with the covid virus. and those are two different worlds and, of course, with the latter, once you start to see a vaccine or some sort of covid relief and you probably want to exit stage left, particularly if you have one of those stocks with a crazy high valuation.

>> in the case of activision, do you think people are going to stop playing video games in there's been the argument made that the changes we've seen in the pandemic will last people will continue to order on amazon because they've gotten used to it, order groceries, do other things, continue to bank online because a lot of the people doing that are older folks who hadn't gotten used to that before. once you introduce them to it, they make it part of their routine, will they trade out of those? >> i think activision is an exception because they have some other pretty heavy winds at their back, particularly the introduction of new devices for games. all of the major platforms are being refreshed before too long. yeah, i continue to think that starting in the '90s and heading up until coronavirus we had a gradual movement from analog to digital, and now with covid we're not going back the movement from analog to

digital is at hyper speed. yes, there will be some companies that will forever be beneficiaries, but we have to be sure we don't blindly hold on to a stock with a valuation that's way past its prime if it is going to have at least some sort of sag in its fundamentals post covid but the stock price is still up there in the ether. >> hey, paul, i know that amazon is one of your favorite stocks we will have you back soon to talk about it. we have some of the futures take a significant turn dow futures down by 115 points after being positive and the nasdaq which has been down by 20 points is down 52. s&p futures down by 13 scott, we really appreciate it paul, i'm sorry. we really appreciate it. scott is going to pick up things right now. >> all right, becky. thanks so much. coming up, tomorrow is the big day. the july jobs report the data will give us key insights into how the economy is

fairing as some parts of the country is reopening and others are hit by the virus alan patricof ins jous "squawk box" will be right back. just over a year ago,

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it's straight ahead. america's still waiting for a round of stimulus. straight ahead as well. good morning, welcome back to "squawk box." scott wapner in for joe. and the nasdaq right now and

expected to open about 13.5 points off right now becky? >> higher frequency indicators are tracking the health of the economy right now. they're also being used by wall street forecasters to estimate tomorrow's monthly job report. steve liesman joins us with the road back barometer. >> adp 515 years ago was the first of these days after it's punched to computers tracking work schedules to millions of employees.

take a look at our three gauges. these are three of the most used data points on the street. the first one starting on your left, cronus which looks at hundreds of millions of time punches for shift. it's showing growth in july of 0.7% in the middle is home base they did a paper and found it's one of the best indicators down 23.4% compared to january then the census now getting in, providing weekly data looking at the survey weeks, it's down a very sharp 4.7% compared to the survey week in june. now let's look at each one of these one by one we'll show you what the trajectory is of all of these. first of all, the home base. you can see the sharpincrease it had from the bottom which was

in april and now those two dips, fewer employees are being tracked by their scheduling software and then it just goes flat even dips down a little bit at the very end going on to kronos, 2.7% strong growth in may. 1.9%, strong growth in june. if you follow the indicators, you would have known what was going on with the jobs report which surprised the street just 0.7% in july. here's the census data which is interesting from two standpoints. you can see again the weekly data showing strong growth may to june, but 6.4 million fewer jobs registered from june to july the good news in that survey is that pickup at the end which doesn't include the survey week but it shows that maybe we're getting a bit of a bounce back lor rest at that mester of cleveland fed saying it may be worse than we thought.

they're meaningfully altering their plans in response to the rise in virus cases including reducing employment or employee compensation or canceling or postponing planned capital expenditures over at oxford economics lydia boussour said the july decline would underscore that the foundation of this recovery is cracking amid the recent surge in coronavirus cases nationwide. just one more thing, there are seasonal adjustment issues that could push up the numbers tomorrow goldman's noted those. no one has really figured out how to forecast jobs in this pandemic with millions of jobs lost and gained in between the indicators they use on the street point to leaders. >> i think that's an interesting point. the week after it takes place that it looked a little better based on what you're seeing and that's the problem with all of these numbers that we're getting right now, it's backwards looking. so hard to figure out what's

coming adp report was kind of brushed off by the market yesterday. the stocks closed up sharply higher a few days ago. the stocks were up sharply even though we saw that number. what day is today? thursday adp was yesterday. sorry, the weeks all run together the market brushed that off yesterday and continued to go higher rick santelli said if you added it altogether it department look like as big of an issue was out there. it's hard to tell which numbers the market will pay attention to and which it won't. >> i think that's right, becky i think the market has shown the proclivity that what it doesn't get the rebound when it expected the rebound, it just pushesthe rebound ahead. i think as soon as this number comes out tomorrow, maybe even today, the debate is going to turn to august what you have is this decline in these unemployment benefits. we'll see how long it lasts. and i think what the street doesn't know is how many people

were buying stuff from companies that were doing well because they had that extra government benefit that was out there that's going to be one question. we've seen at least some capping, i think, in some of the places where you had a surge in the virus. that can help bring some employees back we might even have better numbers coming from the northeast where there's been a shutdown the virus hasn't come back here, knock on wood, and so you might get some re-employment there there are many different stories going on around the country, becky, and that's part of the problem here the street has been wrong. the tensions on the street have been wrong on the street about the jobs report. the ultimate idea of the market is this rebound will come eventually, just not sure when >> steve, thank you. >> jobs, the economy, stimulus talks and much more let's welcome in seth harris and douglas soltzaiken

president of the american action forum. gentleman, nice to see you good morning doug, begin with you as you look towards washington and the stimulus talks before we get to the jobs picture, what is it going to take to get a deal >> i really don't know how to answer that question i actually thought they'd have a deal by now. they seem to remain quite far apart. core issues on business liability on the republican's side, the ui benefit and the funding for states on the democratic side just haven't really seen much movement and so when the core issues aren't pivoting closer to closure, there's not a deal on the table. >> yeah. seth, do you see it the same way? are we going to come to a deal within the next 24 hours do you think? >> i'm more optimistic than doug is, but i think that we're in sort of an unprecedented time. the president and the senate republicans simply cannot leave washington and go out and play

golf without responding to the needs of the american people there are small businesses that are closing permanently. there are american workers who are losing their jobs permanently. we're going to see a meaningful slump in the economy if that $600 supplemental unemployment benefit remains gone it's gone now. and stays gone i think they're going to have to get to a deal. in order for republicans to get to a deal, they're going to have to swallow hard and give speaker pelosi and leader schumer what they want. that's going to be tough 1/3 of the republicans in the senate won't be able to do that. all of the front line republican senators who are seeing bad poll numbers are going to have to push leader mcconnell to agree with the democrats and pass a bill >> the question, doug, really is if they do get a deal, what, if anything, does it do for the job market it's interesting i saw an interview yesterday that ted cruz did with the

washington post in which he not surprisingly assailed nancy pelosi and the democrats but also took aim at his own party saying that the republican's own plans don't do much for the job market either. >> well, i mean, if you go back to the -- what we now know about the initial downturn and how sharp it was from mid to late march, the core of it was a big decline in spending by affluent zip codes in america on services that involved personal contact and that's just fear of the virus. many of those businesses aren't going to come back there's nothing about the ui benefit or checks that directly addresses that problem that's about do employees feel safe to go to work do owners feel safe to open their businesses

do customer feel safe to engage in commerce? that's the core issue. all of this issue about money is not addressing this. >> hey, guys, i don't know if you heard our debate in the last hour about the efforts to extend more loans or more support, i should say, to the airlines at the same time that this other bill is still up for grabs how do you think the american public should think about that issue in relation to this? doug >> well, look, i think on the merits we know the airlines are an important part of the supply chain. the last thing this economy needs is supply issues on the merits you want to make sure the planes keep flying. what does that look like it looks terrible, and i think there's going to be a lot of blow back. they fail to come to closure on some sort of support for the

american household but they can rapidly get to a deal on supporting america's airlines. >> do you think they should take a piece? do you think they need a piece of the airline or some other structure? >> no. >> to a deal like this >> i'm not a fan of this notion that somehow the government's going to nationalize the airlines or any other business that's what you're doing you take equity positions, you're de facto nationalizing it that doesn't make any sense from a national point of view, from a competitive point of view. >> what about the shareholders what do you think about advantaging the airline shareholders over basically every other shareholder group in america right now? >> the case for the airlines is about the broader economy, it's not about the airlines it's about making sure that the medicines that need to get shipped get shipped. there's a lot of cargo that goes underneath those passengers airlines so, you know, that's the case. if that's an important part of keeping the economy in recovery, then you have to do it, and

that's the reality of it >> seth, how do you get the job market going again at the same time the virus is still spreading throughout significant parts of the country >> i think it's going to be extra ordinarily difficult the principle focus has to be a public health focus. we have to get the pandemic under control. we have to get employers to keep the workplaces safe. we have to help consumers feel safe when they go out and engage in commerce. doug is exactly right about that fear is the leading economic indicator right now. people don't want to do business with one another because they're afraid of getting this horrible, deadly disease so until we get the pandemic under control, we have rapid testing, contact tracing, personal protective equipment. really deep government involvement in helping people to understand what to do in this dangerous time we're not going to be able to get the job market back into place. we're going to keep having

discussions about bailing out the airline industry, bailing out restaurants and other industries because we're not going to be able to get people back to work >> you guys have a good day. we'll see what happens down in d.c. today and of course jobless claims a little bit later this morning. we'll talk to you again soon andrew >> thanks, scott. coming up on the other side of this break, greccroft's alan patricof dow looking to open up 87 points nasdaq flirting with 11,000. looks like it will open down 41 points and the s&p 500ff o 11 points "squawk" rushes right after this what happens when a wireless carrier

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. welcome back to "squawk box. alan patricof is a pro at spotting trends. his new venture capital fund primetime partners invests in start jup startups that cater to aging americans. great to see you again, alan we want to talk about this new fund that you've got going because you've taken a different angle on it, which is that you're going after a different age group, both i think in terms of audience, but you can explain it, and in terms of entrepreneur

as well. >> andrew, honestly, i've been in this business longer than i'd like to mention, but i certainly have never been as enthusiastic as i am at the moment about doing primetime partners this idea has been in the back of my mind for the past year in that i was ready to do a third act. i had started apax, i had started greycroft and i wanted to do something else before i -- my -- i'm only 85. so i've been thinking a lot about aging. our society -- the largest segment of our population in terms of growth is the over 60 and yet market has spent the least amount on that area. i think there are so many potential products, services, experiences and technologies that are being built that could serve this market and that are just waiting for an opportunity

at the same time, which is really interesting, i think there are a lot of people who are in their 50s or 60s who have done something, who have created a business or career and want to do it again and have their own second act i wanted to stand up on a soap box and say, if i can do it, anybody can do t i teemed up with a woman named abby levy who had been the president of arianna huffington's recent company, thrive global. greycroft had been an investor and i was on the board we got to talking to each other and found we both shared this vision and the beginning of the year we said, let's do it. we formed this fund and i can tell you in all the years i've been in this business, i've never had any idea resonate like this idea has. people are coming out of the woodwork to bed from interesten what we're doing. >> i don't want to be an ageist.

peter teal said he didn't want to invest in anybody who was over the age of 30, the idea being that when you're very young you can take remarkable risk he used to say, after 30 a lot of people get into business say, i'm going to make some money now, then i'll take the risk later. you get a mortgage you go back and look at all of the real shoot the moon successes, bill gates was 20 years old, steve jobs 21 buffet 26, ralph lauren 26 i'm already over the hill at 43. maybe my time has passed what do you think of that thought that there's a sort of age range and that everybody has only sadly one great idea? >> andrew, i totally disagree. frankly, the academic studies of this show that the success rate of entrepreneurs who start at the age ofand he's ready to do another one. they're all over place

>> in terms of the type of business though that you want to invest in, you think that there's a cohort, an age cohort that's not beings that look like in your mind? >> well, just think of your -- andrew, your parents they get to a certain stage, they need care giving, they need entertainment, they need different kinds of travel, they need different types of -- if they get ill, unfortunately, they need all kinds of other products one of the companies we've invested in, company called care well, is a surgical supply amazon but an ecommerce for older adults who -- and particularly obviously the pandemic has only accelerated the need for these kinds of companies. we have already invested in four companies. we've got a backlog of 80 companies. we only announced last week that we were going in business. it just shows you there's an

enormous ground swell. most of these companies are being started by very young people they get to it because they have a parent or a friend ousin or someone that they've seen age and they say, these needs are not being addressed. just for the reason you said, by the way. >> scott >> alan, good morning to you >> older adult starting again -- >> no, go ahead. go aheadn parallel, it's not just the products and services, i want to encourage older adults, people at the edge where they're being forced into retirement because of age restrictions in a business but where they can say, i want to do it again in a similar field and i want to encourage that and i think primetime focusing in this area, there aren't many funds focusing in this area. there are a few and i'm hoping that a lot more are going to get

created in the next five or ten years, even the next year, frankly, as they -- we want to syndicate opportunities. i think we're going to see a lot of deals you'll see the next year or two, the makeup of our portfolio will surprise you in terms of the breadth of the activities all related to aging >> how, alan, do you think the pandemic is going to impact the psyche and the wherewithal, frankly, to take risks post pandemic for older investors >> well, i don't want to use myself as an example, but i tell you i'm on zoom from 7 in the morning until 7 at night and what this whole pandemic has done is it's created a lot more people who are aging at home through perhaps no choice of their own they're needing different products and they have to be serviced by different

people plus people don't realize the baby boomers at this point are fairly sophisticated i mean, in terms of knowing how to use the computers, knowing how to use their phones and using technology so we're -- this is not five or ten years ago when they weren't as familiar with the technology that's available so i think this is -- honestly we didn't start this because of the pandemic we started it before it hit us as we started to do a fundraising and this is only accelerated the interest and the availability of opportunities, frankly. >> well, with this endeavor boy do you hope you have success with itself i shally good luck, alan.

we hope to talk to you very soon becky? >> andrew, thank you when we come back, with the paycheck protection program about to expire, we will discuss what is next for small businesses then a bill being introduced in new york state that would make it easier for class action lawsuits against big tech companies if they violate antitrust laws. and later rocket companies set to make its public debut today. we'll talk to jay farner and just in joining him we will have founder dan gilbert. this is the first time we'll be talking to dan gilbert since the stroke he had last year. big day for the company. we'll get his plans about what's happening, why he's doing this and where he thinks it will head from here. that conversation is comg inup at 8:40 a.m. eastern time. "squawk box" will be right back. when the world gets complicated,

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still to come on "squawk box" this morning, small business funding the battle over so-called zombie companies and the issues facing small business we'll discuss all of it with operation hope ceo john hope bryant and kevin o'leary senator ron johnson will be here unemployment proposal. take a look at futures as we look towards the day on wall street see if the nasdaq can close above 10,000 for the first time ever has work to do we will be negative at the open all across the board we'll be right back.

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welcome back to "squawk box. main street watching washington as negotiations continue over the next round of pandemic numbers coming when the paycheck protection program is about to expire kate rogers joins us with the latest, kate >> reporter: the ppp is set to expire on saturday, august 8th if you have not yet applied for a loan, there is still $128 billion left in funding as of july 31st. so far, more than 5 million loans have been made for a total of $521 billion. lawmakers are considering extending ppp and enacting additional programs designed to support small businesses and the latest proposal from senate

republicans which includes nearly $60 billion for long term, low cost loans for seasonal businesses and those in low income census tracks and those facing less than 50% revenue loss 19 1$195 million for ppp improvements $10 million to minority business development agency the revenue test, for example, of having to prove that you've lost at least 35% of your revenues in order to get one of those second drop ppp loans, that's causing controversy as well as the 50% revenue drop yesterday 120 business trade groups did send a letter to congress saying if you lose as much of 20% in revenues, that's enough to close your doors they're asking lawmakers to reconsider that and potentially drop it even lower back over to you. >> before you go, given there's so much money left over for ppp,

will there be demand for new aid? how's that going to work >> reporter: i think there will be the house small business committee says 7.5 small businesses are at risk of closing their doors. there were many criticisms first and foremost, it was too rig rigid. there are other options that are more enticing. a lot of businesses need help. >> kate rogers, thank you. becky? >> andrew, thanks. as you know, talks on capitol hill are ongoing for the next coronavirus stimulus package meanwhile, a group of ceos are calling for immediate aid for small businesses here's what former starbucks ceo howard schultz said on tuesday. >> it is no longer a crisis. this is a five alarm emergency in which i believe and i think

the 100 ceos who signed the letter for the restart act said all roads should lead to small business relief in any stimulus package congress approves. >> joining us to talk more about this is john hope bryant and kevin o'leary, chairman at o shares etf, "shark tank" co-host and cnbc contributor congress has not come any closer we had this conversation last week i'm not sure you will come closer kevin, i want to start with you since you got cut off last time. in terms of what's being proposed in terms of what's being put out there. in terms of the plan to potentially make loans to small businesses that could be forgiven, what howard schultz was talking about, what do you think? >> totally disagree. i think, first of all, howard is an advocate of small business and i appreciate that and he's a rock star amongst the entrepreneurial community for

caring about employees it's always been part of his mantra and what he did in building starbucks, but when we started this ppp program months and months and months ago there was a lot we didn't know that we know now the american economy is going through a revolution, a digital transformation there will be many, many winners and many, many losers. at the end of the day one thing john and i can agree on, during this transition we'll displace employees and workers. we should support them let this change happen on its own and let the market be the market i am a huge advocate of small business i have over 50 companies, small businesses that i have invested in at least 20 to 25% of them are going to fail because the world has changed on them. consumers have changed what they buy has changed and where they go has changed. we don't know what the world is

going to look like on the other side of this thing assuming they're going back to where they were is erroneous we can't pick the winners and losers anymore that's what's changed in my mind over the last five months. i am a huge advocate for giving between 400 to $450 to employees, extending the unemployment and letting the market do price discovery on what it should fund and what it shouldn't. there are so many businesses that got money in the first ppp that shouldn't have gotten it at all because they are essentially zombie companies they will never be successful. the world has changed on them. why should i as a taxpayer fund that why not let the private markets come and support those that deserve it and let the others die as they do and should? because those assets will go through bankruptcy and be redeployed efficiently i don't want to spend anymore money on winners and losers

because congress can't john knows that. he has to admit that no one can pick winners and losers. why should consumers be forced to pick that i'm an advocate for small business >> john, your response >> i'm speechless. first of all, i have enormous respect for kevin and what he's accomplished i find it interesting, i wasn't going to mention it, but 10% of the businesses that he started got ppp. five of his own companies three months ago got ppp loans it is -- you can't just say we want affirmative action for rich people and everybody else is on your own that is not the way it works you can't -- we are rearranging the deck chairs of the titanic here the ship is sinking and we're all picking drapes the reality is that even the starbucks ceo and the 100 ceos that went with him have the

right message. that's the woodruff era ceo message of the '60s where coca-cola leaned in to tell the atlantic businesses to honor dr. king atlanta is the biggest economy in the south only international city in the south. the u.s. came out of world war ii, becky, because of the government and its stimulus which went to the private sector which created the marshall plan which allowed us to rebuild europe, which is a huge trading partner and helped us to aid, hello, the average white middle class man to get as much education he could shove through down his house that was the birth of the middle class. that made us a global leader in the world. so, yes, the private sector should lead. the private sector should pick winners but at the moment we all need a little bit of a rich uncle to help us through this. for most of us on the wall

street it's the fed window so we can't just abandon the middle class businesses employing half of this country, half of this country and expect this story to come out well because those businesses and the average person that's driving the economy, which is driving big business we're all in this thing together. >> john, a couple of things i will say is kevin mentioned he thinks 1/4 of companies that he has, will probably go under. trying to make sure it gets through to the people. what happens if the world has changed? >> we're having the wrong conversation my friend kevin is having a market conversation. i'm having a conversation with a war. i think america is at war with the virus. when you're at war you don't fight skirmishes your solution has to be bigger than your problem. let's keep in mind, the

government told us all to shut down we're not talking about lazy people here. not talking about lazy small businesses, we're talking about people that worked their tails off, did everything right, a virus attacked us. 2020 is on pause pull out your pinterest board, dream board. they have to have a stopgap so there's an economy to come back to mr. schultz is right, this is a five alarm fire f. we don't solve this, there will be no argument to have we have to solve this one thing. you have to save the economy driven by consumer spending, 70%, and employment by small business is a little known fact. you cannot just say, let them fail because the people who are going to fail are the ones who are buying the products of the companies and ceos that are watching this program and the ones, by the way, paying taxes by the way, kevin, i agree with you on one thing

we should be prudent on how we use our tax money. we agree on several things this is a great way to use tax money. this is a fabulous way to use tax money, to under girth the economy in a 100 to 150 year war. >> i have no problem with helping people i just don't want to breed me e mediocrity and inefficiency into an economy that can be extremely dynamic if allowed to go get price discovery on its own the american economy is an extremely powerful piece and it has to be let to work and figure out on its own what should work and what shouldn't let's make it easy for people to understand let's say a theater chain, a movie theater chain which employs maybe 1,000 people is asking for 4 or $5 million to

stay open because they want to wait until there's a therapeutic, vaccine so people will gather back in theaters what if after six months people figure out they'd rather watch james bond on their home screen and tablet and they don't want to go to theaters anymore. why should i as a taxpayer have to figure out if they stay in business maybe redeploy them into kitchens, pick and pack robotic locations. it may never need the theater seats anymore. the world has changed, john. you've got to admit that let's support the 1,000 employees and help them find jobs in the pick and pack robotic committee. but it sickens me to give money to the companies that are

walking dead if we let it occur we will come out with a very efficient, dynamic. the government can't choose winners. >> i want to jump in and ask kevin another question john, i know you have a response. >> so i think we're having two different conversations. i really do understand that now. kevin's having a conversation about the investor economy and i have a lot of wealthy friends who got ppp and they shouldn't have their companies were doing okay and they got more padding for their balance sheet. i'm talking about the barber shop owner i'm talking about the day care who has 13 employees who had 14 days of cash before this thing hit. they were in a crisis before the crisis ever hit. when main street america has a headache, black people have pneumonia. 96% of all black businesses don't have an employee, kevin. i'm talking about the vast majority of businesses in this country, 1 in 4, 1 in 100

employees, who had 14 to 21 days of catch before this hit that is the individual you're talking about. it's an individual with a business name attached to it we are not in disagreement with the investor economy i get it i'm talking about the heart of this country if we lose the heart of this country, we are an idea. we need the confidence to pull through so we can create new starbucks, new microsofts and new yous and new mes. >> kevin, let me ask you this. bernie sanders has a new plan today to tax billionaires that he argues have benefitted during this period, people of means, people who had wealth before and had money in the market and owned assets, in many cases if

you were an amazon shareholder or jeff bezos you were a beneficiary because they helped you at the expense of small businesses do you think there should be higher taxes on the wealthy to pay for all of this, to pay for the unemployment insurance there has been a remarkable corporate soigsallism going on and there's a big push to spend more money nobody is talking about who should pay for it. >> listen, andrew, you've stayed on this theme throughout the entire pandemic. there's always a theme to change capitalism there's a better way to go, better system. that's never been the case in 200 years. if you want to tax the rich into oblivion, that's fine. they will pursue opportunities elsewhere. i'm not opposed to taxes we need to be competitive. we need a nation that can compete with everybody else,

specifically china and other asian companies. america's always been the place to bring your idea and make it happen, not because it was the highest taxed place, because it was the place where the market existed and entrepreneurs were celebrated and supported and they created this economy. i like bernie sanders, all of his eidea it said, at the ends of the day let america remain america as far as i'm concerned by the way, andrew, if you took all of the money away from all of the wealthy people defining wealth any way you want, it doesn't solve the problem. >> i don't want to take people's wealth i'm trying to figure out the balanced way to figure out a way to fund what's happened here because what we have done in the past five months is we've completely socialized the losses you as a taxpayer just said you don't want to pay more money to pick the winners and losers and

we profitized the gains and, therefore, we've got to figure out how to re-manage that maybe. >> can we -- guys, we let kevin get the first word i want john to get a very quick last word before we go john, your thought on this very quickly >> internships for all apprenticeships for all, financial literacy education for all. retraining workers for the new economy. i'd love to pay more taxes for that because it's going to come back in more gdp we're having the wrong conversation you want to save capitalism, upgrade it. >> john, kevin, thank you very much this is a good, thought full conversation hopefully washington is listening. thank you both we'll see you both soon. by the way, folks, special programming note related to the conversation that we just had. kevin o'leary, sharyl sanberg

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we're back on "squawk box. good morning, everybody. take a look at the futures we would open negative across the board. dow would open lower nasdaq going for the first ever close above 11,000 you see we'd open lower by about 54 meanwhile, shares of row cue kue lower. that over shadowed the streaming devices up beat second quarter zynga stock higher after the mobile gaming company posted a

47% jump in quarterly revenues there's a stock. you take a look at it right there. it benefitted from people being stuck at home as you might expect during the pandemic looking for things to do there are shies higher by 5% more "squawk box" coming up after the break.

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joining us is michael harris we have sparred over time about lots of things i want to spar with you a little bit about this time. i want to understand what this bill is trying to do and how it would be different than thinking about this in a federal context in terms of antitrust. >> sure. in some degrees all we're trying to do is match what they're trying to do in new york our antitrust laws are a century old and build for a different economy. we still require a collaboration of two areas, price fixing or merger that stifles competition. in new york we still need to have two parties collaborating and aspiring to create anticompetitive behavior federally you don't need that. you can bring an action for unilateral behavior. we want to give our attorney general the power to move in the new economy to stifle the

competitive behavior that is often the result of a single actor acting alone whether it's pricing at a loss just to drive people out of business or in this new tech economy. >> are there other -- >> all sorts of problems -- >> are there other states that had similar bills or laws in place that would allow them to approach the antitrust issue differently than new york does >> sure. new york is unique, andrew we have so much of the economy centered in new york we have always been at the forefront of trying to create enforcement and set the tone for the rest of the country. what we're trying to do here is deal with the situations where you have behavior that was not contemplated no one even conceived of search engines which could prioritize one's own products over competitors, incentive advising or punishing it based on the relationship the search engine

has. we're trying to get our attorney general to support it. >> what do you think of this issue of new york, or frankly it was the case in california with emission standards many, many years ago, taking the lead or divorcing themselves from the rest of the country or trying to create a more powerful force some can say new york is more left leaning that be other parts of the country if you go after all the big tech kwps in new york does that seem fair to you >> of course it is fair. i would argue the emissions standards in california have been a great success in terms of improving the environment. you've never seen it more in history right now than the president effectively saying let the states do what they want, particularly as it relates to the pandemic we're dealing with, but also in terms of the economy, there's nothing wrong with the states in this country stepping forward saying here's an idea we think can be done

better to help businesses. we should all be striving to want small businesses and competitors to compete with these big giants instead of letting them rule the roost. >> i have to ask we debated it when you pushed amazon from coming to new york now that we've been through the pandemic and now that new york is going to struggle in ways we never imagined then, do you regret that decision >> no, certainly not you're seeing in the middle of everything we're going through just earlier this week facebook announced a huge expansion into manhattan. amazon since they announced they were leaving new york have already added a thousand -- >> in manhattan. in manhattan we talked about this >> yes. >> i don't want you to misspeak here the rich are getting richer, that's on the island of manhattan. that's not going to benefit queens, it's not we have -- we can't say that they're coming to new york and it's all the same.

it's not the same. the whole point was trying to build the beach head. >> you are absolutely wrong, andrew you are absolutely wrong because when we talk about this issue over the last two years, what we keep hearing about is the tax revenue that was lost. the tax revenue generated in manhattan will benefit the people in queens, upstate, all over the city and state. no, you're absolutely wrong. if they are bringing all of those jobs, that is going to benefit the people in queens and by the way, it's 5.5 million straight up and i know people like to say that that is money -- >> we have to go it's a longer debate i'd have you back on both issues because you know we have disagreements. they're fun disagreements to discuss. i think they have real practical implications and i do think it's

going to impact the city in the negative, i know you think differently. thank you for being with us this morning. becky. when we come back senator ron johnson will join us to talk about the latest round of stimulus car vanna has been on a tear and later rocket companies set to make its public debut today we will be talking with ceo jay farner and joining him is dedan gilbert. that conversation is coming up at 8:40 a.m. eastern time. "squawk box" will be right back. some companies still have hr stuck between employees and their data.

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good morning, markets set for a pull back. yesterday the nasdaq broke above 11,000 for the first time. the s&p 500 riding a four-day winning streak congress on the clock. the president says he'll extend unemployment benefits if lawmakers can't come to an agreement soon we'll ask wisconsin senator ron johnson what's holding up a stimulus deal. ready for a blastoff, rocket mortgage is getting ready for the first trade on the new york stock exchange we have company chairman and founder dan gilbert and ceo jay farner the time hofinal hour of "squaw" begins right now good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin and scott wapner joe's on vacation today.

we've been watching u.s. equity futures at this hour dow started at 6 a.m. a little higher than where it is. it's now down by 139 points. s&p futures off by 17 and nasdaq down by 38 this does come after big gains we've seen for several sessions in a row s&p 500 and dow have been up the last four trading sessions the nasdaq up for the sixth day in a row and set yet another record level it's the 31st time the nasdaq has set a new high treasury market you've been keeping an eye on. the ten year is yielding around 0.52%. andrew >> thanks, becky. meantime, technology names becky was just talking about flirting with -- the nasdaq flirting with 11,000 for the first time the index missed the close at that level by a little more than one point. mike santoli joins us now to talk about what's behind the surge and maybe which way it's going next mike >> andrew, of course

these round numbers are a decent time to assess how far we've come not necessarily a lot of technical significance look at a five-year chart of the nasdaq composite it shows you the sweep the math was convenient. it was over 5,000 five years ago today. here we are at 11,000. up 120%. this is a straight up level scale as opposed to showing percentage gains it shows you how far we are here we're 20% above. it's not in here, the 200 day average, 21% above that, that shows you a pretty big spread. shows you a lot of up side momentum 17, 18 times at the february top. i did want to put it into perspective. there's so much about the 1999 and 2000 period. what happened in the five years before mid 2000. this is what it looked like in that same time span from mid '95 to mid 2000. it went up like 5.5 times over

the same period of time that the nasdaq this time is up one time and a little bit more. this is the kind of monster rally, the crazy stuff by the way, right there, that's the netscape ipo that touched off the internet craze in certain ways right here, we were 50% at the top above its 200 day average. that's how much mormon strously over bought. here's the dow jones industrial average. we did get over 10,000 and just like the nasdaq has done for the dow, you didn't get a lot more before things fell apart at the peak. this is just for fun this is not saying that the dynamics are going to rhyme with that one >> mike, thank you very much mike santoli in the meantime, top congressional negotiators still trying to come to a consensus in what should be in the next major coronavirus bill democrats and republicans remain

a part of aid to states and federal unemployment benefits. yesterday white house chief of staff mark meadows said president trump would soon take executive action to extend the benefits on his own and an eviction moratorium if congress can't come to an agreement by tomorrow joining us is senator ron johnson. his most recent piece is "no more blank checks from congress for coronavirus. thank you for being here it's good to see you i think you've made it pretty clear that the tyou think the s gotten excessive >> let me lay out the macro numbers here by the end of april we had already authorized at least $2.9 trillion i had oversight hearing last week and there's disagreement. might be as much as $3.6 trillion which represents 13 1/2 to almost 17% of last year's gdp.

employment's down 10.5%. recent economic forecasts show that we'll probably have a gdp shrinkage of 4.6% and we haven't spent or obligated about 1.2 trillion of that i think my main point is we really ought to take a look at what we've already spent, what's left over, what worked, what didn't work. let's make some modifications but let's focus on targeting financial relief to the people and businesses that truly need it i really enjoyed listening to your segment last hour with was it john and kevin? thought it was a really good discussion >> yes. >> really covered the issues in terms of what we need to be discussing. >> although senator johnson, i have to tell you, you are in the minority at this point it's not a view that is popular with mitch mcconnell, your leadership at this point it's not a view that the administration is going along with you could be in a position where

this moves on with or without you. are you prepared to deal with that and what do you think? i saw a politico story where you said i have no idea what they're thinking just in terms of your own leadership. >> i'm just trying to lay out the facts. the fact of the matter is savings rates are up 8.3% in february to 19.2% in june. disposable income has gone $49 trillion to $16 trillion in june 11% of credit card debt has been paid off, almost $100 billion. those are the facts. i realize people in washington don't like numbers, don't like facts, they like rhetoric. we're on our way to 27, $28 trillion in debt i am laying out the facts. i am happy to take, redirect, repurpose the $1.2 trillion that hasn't been spent and obligated and focus that on the

individuals and businesses that truly need the help. listen, when we passed all of this financial support back in april, we had to act fast. we wanted to do something massively. we knew it was going to be far from perfect i'm not criticizing anybody. it was far from perfect. now's the time, we're past the worst part of this now we're looking at coming out of avery severe recession but it's going to be kind of a normal type of recovery and the tools that we need to use really need to be focused on what we can do to grow our economy, how we can get people off the sidelines. right now one of the mistakes we made is a flat fee that incentivized people to stay on the sidelines 68% of people on unemployment made more on unemployment than working cbo. five out of six people, we have to end that perverse incentive we have to encourage people to get back into work >> that university of chicago

study that you just cited, the very same author of that study has put out a new research piece that says if the $600 in unemployment extended benefits is cut at this point and without a deal that is the facts, it's gone to zero, if that goes to zero, then you will be looking at a drop of 4.3% in the economy and that is bigger than the entire drop we saw from 2007 to 2009 combined. are you prepared for that? >> well, i'd want to take a look at that study. again, we've already provided 13.5 to 17 in gdp relieve. within less than a month the ink wasn't dry in the first package when nancy pelosi passed another 3 to $4 billion basically doubling that amount put aside the study i haven't looked at, other economic forecasts are the same somewhere between 4.6 and 7% gdp

decline for the entire year. we have, i think, authorized more than enough money we need to take a look at have we directed it properly. >> senator, question about the liability protection issue which also still seems to be to some degree a sticking point in all of this. got an email as we were on the air. this from a viewer who writes, as a parent of a college student that's reopening campus solely for financial reasons, that's what the viewer's question is, this could be a played to businesses of all stripes. >> first of all, unless china cooked this up in a lab, i think covid is an act of god i don't think anybody should be allowed to sue somebody else because we get infected. what is adequate protection? i'm highly concerned about some kind ofpreemptive liability protection bill we passed that puts on an affirmative do a, b,

c, d all the way to x and they better do it perfectly or we're basically sanctioning lawsuits those affirmative duties will remain forever liability protection for covid will eventually fadeaway by and large, lawsuits, liability, tort law is primarily governed by state law and i think that's a better place to do it. i'm highly concerned about something the federal government does that passes that's worst than doing nothing at all. >> senator, are you for or against more money to bail out the airlines >> well, i don't want to authorize a penny more until we repurpose, redirect the $1.2 trillion but i certainly understand the airline industry is a unique industry it's vital for a functioning economy. it's going to have a tough time recovering from the covid recession until people r

comfortable, until it's a legitimate fear level. i don't want to get covid-19 we are succeeding. we are making head way on convalescent plasma, therapies i'm an early advocate of hydr y hydroxychloroqui hydroxychloroquine in early symptoms, if i start coughing and getting a sore throat, i'm going to take hydroxychloroquine and zinc. we should let doctors be doctors. >> the fda -- >> that's the best thing we can do for the airlines. >> the fda -- i mean, now we're going to get off on a tangent on this it's the administration's own fda that has said that hydroxychloroquine is not safe >> well, no, they've said it's safe since 1955. it may have a problem very late

stage when the coronavirus might have affected heart tissue in terms of heart rhythm, early in treatment it's always safe that is a tangent. i was trying to make the point that the best thing we can do for the airlines is develop those affected therapies, have a vaccine. those the only way you can get people going so they can reopen and start powering our economy. >> right the whole point is people list ento this conversation and they say, you know, senators are more than willing to give more money to the airlines but when it comes to the restauranteur who's struggling and who got 10% of the ppp money as an industry, there's not as much attention paid to the small business owner who's basically left his -- his business is left for dead in the face of this ongoing pandemic.

>> that's not what i'm saying at all. we should repurpose it and direct it. part of the problem with the ppp is it was a shotgun approach nobody knows because we haven't exposed all of the people who got ppp loans. i'm highly suspicious that tens of thousands of people got it that didn't need it. what we should be doing is we should put some kind of back side control on that and what i suggested is that we should limit forgiveness based on the ability to pay for a taxable organization that ability to pay would be calculated based on after tax income for tax exempt it would be based on increasein net assets very simple. moving forward for second loans, i wouldn't put a revenue decline number on there. i would tell people, we'll give you a loan, but if you have

after-tax income or your net increase is tax exempt, you have to pay the ppp lone back where you have the wherewithal the other thing we need to disclose every recipient of ppp loans. when they sign that loan, they signed the agreement that that is going to be disclosed based on sba current procedures and policies so i think the american people have a right to know i'm all for transparency. >> transparency would be good. great to see you. >> have a great day. stay healthy. >> you too. becky, coming up, a look at key economic indicators. the ceo of carvana viacom cbs beating expectations on the top and bottom line for the latest quarter that company highlighting rapid growth in streaming businesses

and says it's successfully managing through the effects of the pandemic you can catch an excludsive interview with ceo bob bakish. "squawk box" will be right back. hey, kids!

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when the virus hit, i think people thought there would be a drop in car sales. there is a shift that might make it good in the end let's start with earnings the stock did fall on this news. what happened here >> it was a great quarter for us the company came together and responded unbelievably well to everything that's been going on in the last six months the quarter growing at 40% i think amazingly given all of the disruptions in our supply chain, every supply chain in the country. we had our inventory down less than 1/4 we're very proud of the way the company handled this. >> now let's think more broadly. i know you think there's a big

opportunity in terms of behavioral change, families and individuals buying more cars, frankly. going from one car to two to three, whatever it is. what do you think is happening here how long do you think it will last >> yeah. let's break that into two steps. the first question is what's going to happen to the market broadly. i think there are lots of reasons to think people will have more personal ownership probably some degree of deurbanization to this more people are electing to not use public transport or ride sharing. i think that's leading to private ownership. that's offset to some degree by some people feeling like they're not going to work at the offices much so they may not need to drive as much. those are the forces moving the number of cars the purpose is how are people buying things. people are forced into different behaviors as a result of what's going on they tried new things they hadn't tried in the past oftentimes there are new

businesses that leverage modern technology this broke habit and caused people to try new things >> ernie, how inventory constrained are you and when can you expect things to pick up in terms of the number of product that you'll be able to get >> we're inventory con strained. that's the thing we're obviously working on there has been supply disruption and the rapid pull back for all of the things that disrupted how you could get cars to the site, manufacturers could produce cars followed by the demand

i do think there is a lot of demand we've grown triple digits every year we've gotten the product to the market. >> let's go 12, 18 months out. post pandemic or some kind of vaccine therapeutic world. hopefully you'll have more production back and more of a supply chain back in business, meaning detroit and the automakers will actually be building new cars, probably selling them maybe at discounts people say i can't get a great deal on a new car so maybe i'll look elsewhere also, there's the supply issue once the supply comes back and depending what you think the employment picture looks like, what does that do to the business >> so i do think we're in this very interesting moment of disruption there's supply disruption,

stimulus in the economy. people with more disposable income i think that's creating even more demand. at some point that's probably the thing that debates into whatever the real world economy is i think the forces we discussed before where there are shifts in the way people are going to used transportation, the number of people that are going to want personal ownership, i think those shifts are real. i think most importantly for our business, i think these behavior shifts and the way people want to consume and buy things are very real. this is a 40 million per unit -- per year unit market it's a very, very large market we're currently approximately half a percent of that the market is 200 times as big as we are today. to the extent consumers want to shift, that's a huge opportunity. market share shift is a big change. >> ernie, very good to see you look forward to following your progress >> will do

thanks for having us have a good one. >> becky when we come back, ready for blastoff quicken loans parent rocket companies with the ipo and is expected to trade today on the new york stock exchange. we will speak to chairman and founder dan gilbert. ♪ ♪ [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive.

welcome back to "squawk box. the dow off call it 120 points nasdaq flirting with 11,000. down 50 points s&p 500 down 15 points scott? andrew, have some data, too, that could impact what you just talked about breaking economic data is coming up initial jobless claims due out mutes we have the number and the instant market reaction when "squawk box" comes right back.

(bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

welcome back to "squawk box" this morning right here on cnbc. we're seconds away from new jobless claims dow of 107 points.

nasdaq off 34 points s&p 500 off 13 points. want to get over to rick santelli standing by at the cme. rickster, the numbers. >> yes we're looking for current initial and continuing claims and we all acknowledge that it has slowed down a bit in terms of its drop. we're consolidating around that 1.4 million on initial claims. this week? this week is a big drop. big drop 1,186,000. that is, indeed, the smallest weekly jobless claims that we have had since the big explosion in claims occurred, of course, in march and on continuing claims, also better than expected 16,107,000 so 16.107 million. and both these numbers are better than anticipated. and the immediate market reaction, of course, should be that yields move up a bit and we

should see pre-opening equities firm up. whether that occurs to a great extent largely depends on the site investors moving into tomorrow's data. jobs report is going to be a biggie the revisions are trickling in the revision is very subtle. still right around 1.4 plus million for last week. and on the continuing claims, it went from a little bit over 17 million to a bit under 17 million but that doesn't dispense the notion especially on initial that the drops this week on both metrics were better than expected. back to you. >> some positive news there, rick thank you for that want to get over to steve liesman who joins us with more as he's looking through some of those numbers. steve? >> reporter: good morning, andrew i think this highlights what we were talking about one is that the job market had a bad time in july, and that was in part because of the resurgence of the virus. some renewed shutdowns

as i showed some of the high frequency data in the 7 a.m. hour, it looks like there was some uptick after the survey we'll see if that suggests we do the worst of this, i don't know what you want to call it, part 2 of the virus i don't want to call it second wave because you need to reserve that for the possibility of something later on it's a definite improvement. it's still you have to pinch yourself and say, wait a second. 1.1 million people filing for claims does not suggest that the labor market is healthy, it just means it's less bad than it was before you still have 16 million people on continuing claims then you have the issue of the benefits, the extra benefits from the federal government running out. that could cause two things to happen on the first wave it could cause fewer people to apply for these benefits because maybe it's not worth it for them. on the other hand, you could have new people who lose their jobs because we've had some good numbers in the economy from

retail sales and other places because americans have this extra benefit that was out there. so we'll have to see how all of this shakes out. i think the question that's been asked a lot, what letter is it is it a v, is it -- there is no straight line on this recovery it's going to be up and down and bouncy let's just hope that in general the progress is forward and toward the better over time. scott? >> yeah, steve i appreciate t. let's get more perspective on this data now bring in our guest, derek hamilton professor, economist and executive director of the kerr 1 institute at ohio state. good to talk to you. you heard steve's analysis certainly moving in the right direction. should we view this as better or should we view it as less bad? >> i think less bad. you know, we probably don't want to be celebrating 1.2 million unemployed but it obviously is an improvement compared to july. >> 21 straight weeks over 1

million. what does it tell us about the big picture of the job market, do you think, and where we're going? >> the big picture is that our economy is on the brink of a potential collapse the good news is we can do something about it if we think about the context of this recession more broadly we make the moral decision to hibernate the economy to prevent death so likewise there is public power that can be initiated to protect the economy. even better, put us in a new -- a better situation coming out of this so that we're more resilient to the next pandemic or the next economic downturn. >> one of the issues though is given what's happened with the pandemic, we don't have enough jobs right now to satisfy all of the people who may need to find work, do we? >> we don't, and there is where the public sector can come in. the public sector can literally create jobs, not just jobs as place holders but jobs to

improve the infrastructure of our nation, to make us more resilient to any other public health catastrophe, to improve our schools. i can keep going, but there's a lot of work that can be done that quitequite frankly isn't b done america can improve in many ways with an infrastructure plan and why not now when we need to put a lot of workers back to work? >> what do you make of the stimulus talks in washington i referenced a conversation i heard yesterday with senator ted cruz who was assailing the democrats but also looking inward to his own party and suggesting that even the republican's plan doesn't go far enough to try and create jobs. >> i mean, i agree we can -- the conversation around austerity is a silly one given austerity can drive us into a deep recession. that to me shouldn't be the conversation the conversation should be, one, making sure that workers are

protected, both in terms of their health and their livelihood and then, second, what can we do so that we're not in this situation again? i mean, it's important to look at these numbers of unemployment on a monthly basis, but let's look at our economy overall and the trajectory we've been heading. we've had productivity increases with stagnant wages so, you know, what can we do so that we're coming out of this in a shared prosperity economy. and there's plenty of stuff we can do >> what do you expect tomorrow with the bigger jobs number? we had a huge upward revision of the prior month on adp what do you expect we're going to see tomorrow? >> bigger job number i mean, so when we get the numbers around demographic change if we look at racial disparate, what we have seen in july -- i mean, first of all, this recession was different in that everybody was hit, black, white, males, females but then as the economy started to open

back up, we reverted back to previous recessions where the black unemployment numbers still remained high, when white numbers started to trickle down so i expect more of the same the adage of black people are the first fired, last hired. that was different because of the abruptness with which we shut the economy back down as we open back up, unfortunately we still have race as a defining factor as to who has access to jobs or not. as we break it down by demographics, i expect us to unfortunately revert back. >> small steps in the right direction. professor, have yourselves a good day talk to you soon >> thank you for having me have a good day. >> you bet becky? >> thanks, scott when we come back, rocket companies chairman and founder dan gilbert and ceo jay farner on the red hot mortgage market and the company's ipo today. and at the top of the hour, don't miss a big interview with

senate majority leader mitch mcconnell. that will be followed by an interview at 9:30 a.m. with the speaker of the house, nancy pelosi great to get both sides. hear what they're thinking try to find out if there's a deal that they can reach stay tuned you are watching "squawk box" right here on cnbc

welcome back to "squawk box. we've certainly trimmed our losses after jobless claims came back dow would open lower nasdaq above 11,000 and coming back towards the flat line we have just about an hour to go before the opening bell. andrew, we'll see how this all shapes up. looks like we're heading in the right direction. >> hopefully little bit of good news. meantime, on the other side of the break, rocket company's chairman and founder dan gilbert and the ceo jay farner on the big ipo of the stock getting

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want to get to cnbc headquarters hey, jim great to see you you just saw these jobless claims numbers better than expected looks like the market's going to move in a positive direction we're going to get the jobless numbers. all of that with the backdrop on what's going to happen in washington i know you're talking to pelosi later today. i wonder whether this in a way, this good news is bad news in a certain way for what washington's going to do because they may not feel the pressure. >> i am concerned because i

think they seem to be philosophically far apart. you've had amazing debates on the show no rancor. actual debates it seems like you either want to help people or you either want to say, you know what, they've had a lot of help. let's see there are winners and losers i hesitate to say that because it's the pandemic that's been the winner and the people have been losers. it's not like the people versus the people and i think that both parties just refuse to come to grips directly with the fact that the pandemic is behind what's going on, not the parties. and, andrew, it's painful because we both know that the reason why restaurants are closed is not because of what washington is doing, it's because of what covid-19 is doing. we haven't figured it out yet. social distancing is crushing things i'm in favor of it you have done a great show this morning. it's been fantastic. >> thank you, jim. we're looking forward to your big interview with pelosi in a

little bit we have another big interview. >> say hello to dan because he's a hero. >> he is a hero. that's where we're going with this conversation right now. becky, over to you >> andrew, thanks. rocket companies, the parent company of quicken loans, is set to debut on the new york stock exchange today after ipoing at $18 a share. joining us right now is dan gilbert. he's the chairman and founder of rocket companies ceo jay farner gentlemen, welcome to both of you on a big day dan, i just have to say, having not seen you or gotten to talk to you in the last year plus since your stroke, i'm just so glad to see you today. i just wonder how you're doing thanks for being here. how are you? >> thank you i'm doing a lot better with the people around me helping me every day. it's been quite an experience and quite a challenge. i mean, it happens

instantaneously. you're living your life and then one day it happens and your life is completely changed. so, you know, there's 1.5 million strokes in the u.s. every year not a lot of people talk about strokes. talk a lot about cancer, a lot about heart attacks, but stroke is not really talked about it hits more people than almost anything and it's -- so mine -- it could have been worse, let's put it that way it took out my left side right brain stroke but, you know, physical therapists are like miracle workers every single day i think they work harder than i do get it done. >> i know you've been working hard and spending hours every day doing this and i'm just grateful to see that it's working and that you're doing well >> thank you. >> i have to say, this company, i've always thought of this company as your baby you started it 35 years ago. you grew it into this phenomenal thing and i was really surprised when i heard that you were going

to go ahead and do an ipo. i wondered what you're missing is it the quarterly calls with the investors you're looking forward to why are you doing this >> jay gets to handle that i can't speak to that. i will say that we just thought it was the right move for our company at this time 35 years in, got thousands of people now working for the company and we can -- they all are stockholders now which is a great thing, something we've always wanted to do. that's hard to do in a sub s corporation, private company situation. you can do it in a public -- we want to use our stock as currency and potentially acquire more fintech organizations and put them in the mold there's better access to the capital markets and there's a lot of reason. you probably know them all yourself, i'm sure but we're excited about it and if i could borrow a line from jeff bezos, we're in a get rich slow scheme here.

>> 35 years. >> yeah. >> i can't take credit for that line i heard him say that somewhere >> that's a good line and it's definitely applicable here jay, you're going to get the tough questions on this this morning. >> sure. >> you are the ceo, the one running these things the pricing came in below what had been anticipated, $18 versus the 20 to $22 a share and you're looking at fewer shares, 100 million versus the 150 that had been talked about earlier. that brings the valuation down from at the high end $3.3 billion down to $1.8 billion what happened? why do you think the cooler reception than had initially been anticipated >> i would say that we're pretty excited where we're at as you know, this is an art more than a science as we talked to our bankers and so forth, we put our best foot forward and probably the most important thing, as dan discussed, we've got 35 years in

the business we're more focused on the next 5, 10 years than any given moment in time the investor base for our opening is probably the most important thing. we've focused on that versus selling as many shares as we possibly could i think we're in great shape and more excited than ever about the future think about the momentum record quarters, record profitability, record growth this is a great, great starting point like dan just pointed out. we're close to 9% market share up 5%. a lot of positive things happening. as he always reminds me, this is a marathon, not a sprint. >> you guys are now the largest mortgage lender in the united states eclipsing wells fargo, jpmorgan, other big names we know that's incredibly impressive i think some of the questions raised is, look, it's a cyclical business it's been so high right now. your revenue was $5.1 billion

but is there a point where it starts to look like a less rosie business because interest rates are already so low, probably everybody on the planet is trying to refinance now? is there a point when that turns and what do you do then? >> great question. dan and i were talking about this there's 11 trillion mortgages in the money meaning ready to refinance. the capacity is 2 to 2.5 trillion we're making up a great portion of that. when we think about our business, we think about the long haul. as we come up with strategies to grow, purchase, refinance, cash out, we don't think about the rates. we don't think is it going to be a $3 trillion a year market, 1.5 trillion, we target a normalized market and set our drivers to grow profitably. 35 years in the business, dan's always said, you know, interest rate is not de facto client service, great technology those are the ingredients that are going to move you forward. that's what we'll keep doing

our goal, 25% market share over the course of the next ten years. >> wow hey, dan, we've talked in the past about that technology and how quick it has been able to really turn around a mortgage. i'll admit i've used rocket mortgage a few times to refinance over the last seven or eight years. it is kind of amazing. the last time i did it i did it on a lark, i was watching the super bowl i went on to see what my new rate would be. it came back to me in less than 15 minutes i was on my way to bed i got the information before i went and got into bed. how important is that? and that's been a huge part of what you guys have been talking about. the market looks like it's valuing it like a financial company less than like a technology company. >> that's sort of one of the big points of contention we think we're a tech company that happens to do home loans. we've said that forever. there's a lot of -- years and

years of efforts by hundreds of people in that technology team >> we're up to 2500 technologists now. >> to build what you experienced, becky doing mortgages in 3,000 counties in 15 states, each one is different each one has to be fleshed out, once you do that, any other kind of transaction is less cumbersome the public stock, if we go out and acquire some businesses, we can help them achieve things because the mortgage was the hardest. >> i'll just point out, becky, this month we'll do 100,000 closings in this country up from 50,000 or so just four or five short months ago so when we talk about the technology that we've built and the scale it brings to our platform so we can grow. as dan always points out, the next loan on that platform is even more profitable than the last loan because the variable costs are so minimal, it really is a fintech company

to dan's point, if we start with something that's as challenging as mortgage or real estate, then other things we may offer like rocket auto, we think we can deliver even a better client experience we're a fin tech company we know that we believe over time the market will recognize that as well. >> gentlemen, it's good to see you this morning >> becky, it's the speed for sure but it's also the quality and the clarity, visibility that the customer gets into on their mortgage, which is the biggest financial transaction the average person goes through in their lifetime we've decided to focus in that as well. hopefully you experienced some of that too. >> congratulations, guys it's scott i have a question for you really, jay. picking up from what becky referenced earlier, that you're now the largest mortgage originator i'm wondering as if you feel as though we're really in the midst of a sea change where banks like

yours continue to have a larger slice of the mortgage business you're already doing 59% non-banks are in terms of mortgage origination how big do you think that can get? >> as dance always points out, it's bank versus non-bank. we think well capitalized versus not well capitalized we're better capitalized with the ipo, that strengthens our position more. how big can companies get in i think it's experience, technology and brand the rocket brand is the clear leader in the space. so our mission right now is continue to add that capacity. as i referenced before for us, 25% market share in a normalized market or about $5 billion a year, that's rps where our sights are set i think the client's driving this the client wants an incredible experience and that's what we are here to deliver. >> hey, dan. it's andrew here

>> andrew, how are you >> it's great to see you i want to reiterate what becky said i hope you heard what jim cramer said about you being so heroic we're so glad seeing you doing so well and also just wanted to also comment on the great work that you've done on behalf of detroit. i have a broader economic question given that we've been talking about jobs and jobless claims today and given that you've dealt with a city that's had to rebuild itself. we're a country that's going to have to rebuild itself how do you see the economy playing itself out over the next, say, 12 to 24 months >> well, that's the big question i think that we see the same numbers that you guys see every day. the housing numbers have been strong for both existing and new housing as well as housing starts so that's -- i always think the housing is a leading sort of market metric when you look at such a big purchase.

so, yeah, that's definitely driving part of our business and being the mortgage but drives so much of the economy, we really pay attention to it. >> i would say just in taking cue off of dan and the isms and the culture that's so important to us. you'll see it when you believe it what dan has done with the city of detroit is that focus on creating and believing those same things exist in america. you talk to homeowners, people looking to buy a home, there's a lot of enthusiasm out there. people are recognizing their lives are changing and going to spend more time in their homes in the future because working from home has been demonstrated. it can be very, very efficient the passion and excitement we talk to millions of people a month is alive and well here dan, most americans are

following the same belief and, you know, it will be a challenging road but we'll pull through this thing just like detroit has. >> i always like listening to warren buffet and how the economy is doing he talks about look at our country in 200 years ago where it was from an empty field and where it is today. he believes in the american economy, i do, too, so do millions of other people seems to always -- whatever happens, this economy can take it and it bounces back we had some big hits here in the last century ten years ago it was probably the biggest scare in many people's lives but we ended up all right through that as well so i think that u.s. sms. econo the strongest economy and it comes back it's because of the belief system jay was just talking about. we've got to make more people, more politicians believers start talking positive and start

showing examples of things going on positive in the economy >> there's some challenging things there as well >> people are watching washington to find out what happens with unemployment benefits and the other relief coming out with the next stimulus package at the end of june 5% of your mortgages were in forbearance. obviously what happens next in washington will determine the direction for where things head from here. i'm wondering if you have any insight with how things are going and where you're going next >> great question. we're running half the forbearances of the industry high quality mortgage origination, our servicing book, nearly 2 million americans you think about consumers

thinking about forbearance, taking time to explain it, what that means, what their options are is critical. our take on this is many americans are testing the waters but are in pretty good shape so we don't anticipate forbearance riding much and at least on our book than what others are thinking. i saw the unemployment numbers i think for last week and if i remember -- if i saw this properly, claims are down. so as dan pointed out, positive things happening in the economy. we feel really good about where our servicing book is. >> we only have 30 seconds left but the culture at quicken has been a terrific one. will it change with this idea? >> we sure hope not and we're going to do everything we can to prevent it from changing we're hoping putting stock in every person's hands who works in the business puts everybody on the same side of the table and there's even more cohesion

and increased focus on culture. >> that's right, ecky. i think getting the right investors is critical. we've explained who we are, our isms and our culture they embraced it we think we can strengthen the culture as we continue to move forward. >> culture is just another way of saying who you are and what drives you and how you prioritize things. >> right thank you guys for having us this morning. >> thank you. >> appreciate it. >> thank you for enjoying us on this important day we'll be watching. >> appreciate it. >> that does it for us today make sure you join us again tomorrow right now it's time for "squawk" on the street.