they say we need you to see the organizations, the friction less seemless secure applications the gold mines of the future rest in seemless transformative digital experiences and we're proud to be part of that for the brants that is succeeding. it is tremendous in a difficult sales environment for many companies. >> and hopefully this will be a long-term conversation that we can have carl, i will send it over to you for "squawk alley.

>> an important day in washington good morning, everybody. welcome to "squawk alley." this morning john fort has the morning off. the market in a bit of a molding pattern. earlier this morning we heard from both sides of the isle. the argument is how much is appropriate at this particular juncture as we try to get the company back on it's feet and get the country back at a place where it can sustain itself at the earliest it would be this year or early next year. >> can we give a huge chunk of money to the people who are

disenfranchised? to those that want to sna business so badly and they can't. who are the most affected because they had the at least chance in our country? that has to be something that both sides can lead to >> perhaps you mistook them for someone that gives a damn. they don't believe in governance they would require some acts of government to do that. >> ilan, we'll see if we get any more upaddition. >> yeah, pelosi said part of the goal here is to get more money in the hands of the people but the clip made it clear how deep it is between the two sides here this is a stunning statement

here from pelosi there will be more leaders coming along here. so the talks are continuing, that is a good thing but the fact that they dragged out this long means that a lot of people are waiting from relief. >> yeah, what is it ten days of talks? there can't be too much optimism the president said he would step in but what could he really do he can't put a dollar amount on it or do anything with regards to how much of a relief imagine would be put out, right ylan >> that's right. i mean there is talk around the president doing a type of action whether or not that is extending the more tatorium on e visions

but what kind of wlakt would that have. if they delayed cleblgted i'm not sure that would be a big economic incentive it would take congress to forgive those taxes that are due. so the can economic impact questioned with questions of authority mean that a lot of this is political rhetoric now that lawmakers and the white house have missed the real deadline of july 31st. >> we'll see what happens. likely to add more pressure on lawmakers. we'll keep a close on on it. thank you for that let's go back to the markets and tech and you know it has been one week p since that is toric virtual hearing. cnbc is looking at the antitrust case reading hundred os of

documents revealing some big findings joining us to discuss what he found is the ek editor i know you and i both pours over these documents. in a lot of cases they said a lot more than the ceo's themselves >> exactly that whole hearing, a lot of bluster from the people on the sub committee questioning the ceo's and a lot of the ceo's doing their best do delay and deny the adult, but it has it clearly how the companies were thinking as they went through acquisition processes, and it is revealing that we have a lot of the e-mails. >> yes, you had an e-mail from

bezos and what struck me is that there was no smoking gun, per se there was nothing that said that did something -- what do you think will come out of this? is there anything that lawmakers can point to to enact real change or regulation >> that is what the companies are saying we went through these and submitted them and you approved it and now you're trying to backtrack on us and that is crazy. but it shows a pattern, of this anti-competitive behavior. mark zuckerberg and jeff bezos really stick out they have a joyless exchange

and he sounded worried that he was worried that he would come after instagram if they didn't join facebook. >> we spoke about that last week >> yes, they basically admitted they would under kwut diapers.com, but consumers are not paying more prices now amazon does a pretty good job at keeping things cheap i wonder if it will hurt their ability to get deals, build merchants on their platform. recent years, perhaps the implication is the way they're able to do business. not necessarily what the lawmakers do to the companies. >> and that's one of the things specific to amazon that they're looking at how do they play nice or not so

nice with third party sellers. that is a very large percentage of the sales on amazon overall are they snooping into that data to inform their own first party products are they giving them the proper promotion? that is what they're looking at. begin we didn't hear too much of that out of jeff bezos mouth, but we have the e-mails and the documentation in black and white. >> the hearing was supposed to be about anti-trust but it i did invol devolved and last night twitter and facebook put a flag on that trump campaign post about children being allegedly immune to the virus

>> yeah, the thing that happened last night was particularly interesting and that is like twitter and facebook coming in to play the role of editor and chief of the internet. we're going to make sure that all that is going out there is right. what is even more interesting is that it was a fox news clip they ended up taking down because foxx, the anchor that's interviewed trump didn't necessarily go out and try to correct them or ask them a deeper question about it it is interesting that we're watching facebook and twitter here play the editor and make sure the right information is out when a major media organization could not for all of the talk we have heard, but they are acting like a media company. >> thank you, steve. we're going to continue this conversation our next guest has gone up against one of these tech giants

suing google this year over a patent infringement. joining sus pus is patrick expe. first i have to ask you about anti-trust what is the status currently of your lawsuit against google? >> yeah, so we have successfully concluded two lawsuits defending and protecting our invention and we have a third right now against google that is set for trial in february we're looking forward to having this resolved and feeling very confident about that >> did you hear anything at t thing or did you see anything in the documents that helps your case and shows that google has or could steal property? >> well, so, there is a few

dimensions to this this one. we have to innovate and execute. the second is defending our property and the third is standing up to respect the industry and really sbr entrepreneurship i did testify in january and you know i think really from what i saw last week i completely agree with the chair and everybody that was talking from the sub committee about the fact that we simply have too much power and too few hands what i saw, and they admitted to selling the echo under cost. that is predatory pricing. that is the diapers.com

situation. google is doing the same thing the way they infringe our intellectual property. there is rules on the books today and i think the sub committee is doing great work. it is about innovation and things that we hold dear >> do some or all of the companies need to be broken up in some way? >> i think it would be -- i would welcome, you know, companies spinning out their businesses and competing head to head as opposed to using their many noply in one particular area to subsidize the cost of their products in another. that goes to exactly what they have talked about. i think all of you know that

ultimately new business starts are at a 30 year low we have half of the number of public companies as 25 years ago. we have a real issue here in terms of competition, entrepreneurship, and making sure we're set up for the future we talked for several quarters, did it come along at the wrong time >> really it is more a story right now of us having launched three new products being able to make that happen without our usual ability. that is a great story and compared to where we sat back in march and april and dealing with

what was ahead, we're in a fantastic situation. we raise guidance. our transition has not about the pa pa capacity and the tariffs we have that amendmeexemption n. going to the bottom line as well in the future quarter, but our transition has been delayed a little bit because of the pandemic and malaysia taking actions to shut down the country. but this is really a story of our new products being received extremely well by we'res and we look forward to the next quarter. >> are we looking at the demand

and supply balance, and how are you thinking more broadly about supply chains? you ask anyone trying to get a tool that is made in southeast asia and this is clear that supply chains are strained >> we feel like we'll be back in a good supply situation by the end of this courter. how do you build a more resilient supply chance. and i think we're seeing whether or not it is a pandemic or geopolitical issues, the fact that we're going to need to be a little bit more thoughtful in terms of where we have production, how we make sure that we can be resilient in the face of shocks like this so that is definitely something on our mind and i'm seeing it right across the industry.

>> your direct to consumer sales up 300%. how are you thinking about your physical footprint and it is requiring you to rely on amazon less >> we also did some -- we think that was a tectonic shift. it is remarkable that people would buy an $800 product online, sight unseen and unheard. so we feel really good about that so we have doubling down on that for sure so i think we're seeing consumers shift their purchasing they are partners of ours and they have done great jobs to

adopt. but i think we're seeing more and more online. so we're making sure that we're set up that way. and we're set up like that for the future >> thank you, patrick. >>. >> when we come back the ceo of western digital is going to join us that is coming up in a moment, don't go away. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done.

we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

down sharply today the stocks now down about 40% for the year welcome back, good to see you again. >> thank you for having me on. i can't figure out if this is about covid related price constraints or pull forwards earlier in the year. >> there is a lot going on and overall year over year growth in that quarter we did see a lot of covid expense

fairly lowe ggistical issues. there is also a lot of product transitions setting ourselves up for the future in the first half of the year we saw a lot of supply chain disruption a lot of demand. driven by work from home i think we're going through a rationalization period for the first quarter. >> when do you think this smooths out? they are at a higher risk for not reopening or reopening at a lower scale. what do you tell investors that worry we're looking at a stair step down. >> we saw our channel

business -- we saw, we see that same dynamic as some of the small and medium business. our biggest customers, look, we're in a world where demand for our products will be there i mean we store data there is a lot of data being created. we're the fundamental storage for the public cloud we don't know how much u how long -- how long this is going to last. we talked about that between covid and the economic situation. we think the demand for data will be there and we need to get through some of this -- some of things leveling out and on our own we need to get through in the next quarter >> one analyst calling your quarter a simply a mess. i know you have only been there four months, how do you intend on capitalizing on some of the

trends, data center, and cloud storage that we're seeing what is your strategy going forward >> the big trends are on our side we play in the cloud we're the great place to be. so the long term hope that the world is going to create more data in the future how do they deliver a better

product. >> and david, is that going to involve a price war for the next to few years >> i think memory pricing is very good with capital, adding capital into how much we're producing and supplying. we think there is pricing headwinds in our memory business and we'll play that quarter by quarter, but i think long term the industry has been pretty good about balancing investment in the production side >> it is part of the game in semis. david, thanks, well see you next time >> thank you very much >> carl, as go to break take a look at shares of big commerce

surging in it's second day of trading. of course a busy week for ipos continues with rocket companies opening moments ago. shares are a little under water after pricing below the expected range. a big show still ahead don't go anywhere.

♪ ♪ [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive. - hey. - [narrator] she takes two prescriptions. kate's son jack, takes one too.

kate works hard, and thought she had good insurance. but she still pays too much. that's no good. so kate downloaded the goodrx app. now she can compare prescription prices, to find the best discounts. she even beats her insurance price. good for you kate, good for you. goodrx, stop paying too much for your prescriptions. download the free app today.

welcome back, steve leisman getting surprising data on the economy. >> the new york fed reporting that household debt fell by $34 billion in the second quarter. the first such decline since 2014 it came from a record $76 billion fall on credit card get as americans pulled back on spending and using plastic in the shut down. that off set a surge in debt payment. and the combination of large unemployment benefits and government programs and the spending cuts, an unusual decline in delinquencies they looked into the debt for 30 days declining for student loans and credit cards a separate survey paying down

their debt it played a big role as well in all three types of debt declining. all of these helped with credit scores, but it could mask underlying problems if the virus continues to rewreck havoc on te economy. >> thank you, steve, we'll get a better look at that coming up. >> more fall out from that big storm. more than 1.8 million customers are still without power along the earn seaboard. that is according to powero poweroutage.us >> actress melissa melano

sharing her struggle with the virus. symptoms continued for months and she got tested again and was found to have anti-bodies. she is telling her story to highlight flaws in the testing system >> testing labs there are struggling to keep up with demand many are closing to allow staff to take their summer vacations the vacation crunch is just one part of larger problems with that country's testing strategy and despite recent increases france is averaging just over 1,000 new virus cases per day. you're up to date with that news up carl, back to you. sue, thank you very much the ceo of rocket companies will be with us the stock is now open. pricing at 18 as you can see up almost 18.5. wee ckn mont'rba ia me

(music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries.

it is one of the rocket ipo's, pricing at 18, we have the ceo having joined us on squawk earlier thank you for coming back. >> we're programmed to expect debuts to have a blistering hot opening day. >> i'm excited about where we have come from as you know for us, this is more about the future and as the guys say putting the puck on the ice. i feel great about where we're at so describe what the puck brings us is it more about dijtyization?

>> yeah, the consolidation has not happened in the mortgage space until we got involved. we moved 5% down to 9% market share. and the scaleable nature of our platform, the partnerships that we're establishing we're seeing that now years like this when we're so profitable, we may be able to offer dividends here >> hi, jay it is gies to see you again. first i have to say skate to where the puck is going. i'll let that slide for now. and i just had to point that out. >> okay, good, for the record.

getting that cleared up. what does it take to get there and why do you think they have an appetite for everything we have learned overtime that always our belief is that you have to believe something to see it so we're new to the publicly traded markets, but the 2500 technology folks, the 25 years of the complex mortgage process. this week we're going to close 100,000 mortgages. we know how powerful it is, and we'll just continue to demonstrate that to the market and line it up with our incredible digital first plan, and i'm sure you will see the

entire market behind the companies. >> why do you think they didn't see that currently given how many companies want to be viewed as companies there is really no one like us people know that our technology helps with origination, but i just think we're so much different than everything else and it might take awhile for everyone to grab on to to this, but with a $36 billion market cap we see upside ahead. >>. >> i know we're talking about lodge-term growth stories, but

there is a feeling that all of the affordable houses have been snatched up. right now i think about four months of inventory is about a very competitive market. you $11 trillion that have been taken, 11 trillion of mortgages that are in the money. so there is a lot of work to be done to help american homeowners we see a great rush here for full approvals on the purchase size side of the house. but i think it bodes well overall because of demand. >> finally i noticed you mentioned a dividend, do you have a timing on that?

>> we don't this year is just so amazing and you know our first priority is always investing back in our company. we have been doing that for years now as you know. every dollar we put in to build out the technology and the platform has paid us back. that is where we look first, but when you have a year like we have experiencing now where our current margins are north of 70% and we're looking at volumes going from $15 billion to $30 billion, it will be an amazing year for us. we want to keep our options open and a dividend could be a real option for our shareholders. >> jay, we appreciate the curtain raise early this morning with dan and this on the open. congratulations again, i look forward to talking to you as well >> yes, we love what dan has

done for detroit and we continue to wish him well >> take a look at gaming tooks they are getting a boost for the pandemic take a look at zynga flat, but we'll talk about it th t cwiheeo next, stay with us

right now, switch to t-mobile and get four lines of unlimited for just $25 bucks a line. with access to america's largest 5g included. that's right. unlimited and nationwide 5g for the whole family for just $25 bucks a line. only at t-mobile.

zynga is getting a boost by players tuck at home joining us is ceo frank gabo thank you for joining us >> thank you for having me >> how sustainable is this what are you doing to make sure that their gains are sticky beyond the pandemic? >> our teams were working from home at full capacity building

more content, new modes, and so be able to play and social distance when you're away from family and friends, we saw lifts inside of the engagement curves. we saw the amount of chatting go up 400%. they are cranks out new futures and keeping that engagement going. i was not familiar with it, but it is the idea that they can be played in a minute and it is an add based model. it seems counter intuitive i thought they were spending games for longer, and two the

advertising business model at a time when marketers are scaling back >> we have been watching the category for a couple years. it is among the largest as well. it is a global add yus that wants to jump in and play a game mobile devices being on you at all times. there are times you want to pop in and pop out our view is that scale really matters in the mobile ego system and they are going to be serving over 165 million people per month. with that size of market there is a lot of inventory.

we have not seen the same dynamic, but our advertising business has been good and we expect that as we end in the second half of the year we feel very good about our progress there. >> i want to get your thoughts on apples app store. some say that the commission fee could be lifted if that was lower. >> the total revenue on those is 72% that comes from games. the app economy is the mobile game economy it is a very important part of their businesses we like to keep our business terms and discussions private between the companies, but if there is any shift in the rates

there it would be a tail wind for our company. >> so it sounds like you're on apple's side you think the developers are getting a fair shake here? >> i don't think that is what i said i said when we spoke to them about the business terms we like to keep that private between the companies. i think there is always room for innovation and opportunities to see the eco system evolve. overtime apple has introduced subscription rates and opened up new pamarkets. they get feedback about things working and things that could improve. i think it is a healthy relationship of give and take and overtime things will change and evolve >> how sir prisoner press supprs

the had market right now? how much confidence do they need to have before they can turn on that situation again >> i think what you saw was the lows in that late march and early april time period. we're starting to see more brand advertisers coming back in a lot of entertainment companies increasing their spends as well. their services are very appealing and they want to find in that shelter in place environment. it is a big component of what our eco system is all about. i think over time things will improve. there is a lot of interesting dynamics in the ad market right now. it will be choppy in the short term but in the long-te term i think

there will be opportunities to reach players and get the right products and services in front of them. >> this is a very new york centric question and i'm not even sure it is material, but mobile gaming is a huge market people that don't use mass transit, will it take a chunk out of what would have been an audience for mobile games? >> i think we have not seen the reduction? engagement the time they're at home they're spending more sessions in mobile games. you get a few more turns in words with friends so as you're moving through the house making dinner, getting your kids ready for home work, there are times and places where you want to take a quick break

and drop into a mobile game. it is free to play it is mass market appealing, global, and allows you to conform and tailor it to how your game is going you can have multiple sessions per day. frank, last question for you do you continue to look and continue your mm&a strategy >> yeah, we participate in that and we have a good string of opportunities come our way there is a lot of ways to look we grow our business, and as

things come our way we want to partner with some of the best talent out there and we will continue to do so. >> got it, we will continue to watch. frank, thank you so much >> thank you very much >> when we come back, the health center chain oak street health ticker in just a moment. (upbeat music) - we did it! (crowd cheering) - [narrator] wherever you start, snhu is where you can finish. (crowd clapping) (crowd cheering) - here we go. - [narrator] and it's it. - [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it!

- i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. welcome to camp tonsafun on xfinity! it's summer camp, but in your living room.

learn how to draw with a minions expert... how to build an indoor obstacle course! plus... whatever she's doing. and me, jade catta-preta. the host of e's the soup! camp tonsafun. it's like summer camp, but minus the poison ivy. unless you own poison ivy. in which case, why? just say "summer camp" into your xfinity voice remote to join.

take a look at shares of roku falling more than 8% in today's session. this comes after ceo anthony wood warned investors about ongoing uncertainty in the ad industry and says he believes total tv ad spend won't recover until well into next year. still it's important to put this move into perspective. this stock has been a big winner in the stay at home trade. ua aeyilbeacin two.

welcome back carl, we're looking at a few ipos this morning. we just spoke to jay farner of

rocket companies let's check in on how it's doing in its initial trades. we're looking at oak street health and carl, it's been quite a busy time for ipos you have to wonder if this is increasing the appetite for some of the big guys later this year like door dash and air bnb both of which have said or i've heard from sources are not off the table this year. >> yeah. interesting especially rocket. it got a lot of buzz that the pricing wasn't as impressive as some had hoped stock did bounce on that but maybe some realization there's more of value play in that long term >> that was great question and not necessarily one you expect from a company trying to look like a tech company. there is another ipo and that's

oak street health making its public debut we're awaiting the first trade we're joined by the company ceo. thanks for being with us this morning. >> no problem. i'm used to that thanks for having me >> me too. i should be better at it i wanted to get your thought ons the big acquisition of this week what does it tell you about the future of health care and your strategy which is seeming to go the other wap y by opening up physical centers around the united states. >> we've had a problem with low quality and high cost. i think we need to change the way we're delivering care. i think people are realizing

that's not the right model for our patient experience perspective. i think you're seeing companies like teledoc which can offer a different proposition for patients we're serving a very different population than a lovongo. we have much mf or a younger, tech savvy groups. they're both related to the same trend. we're executiing and taking car of patients in a different way >> right at the same time you guys ishave

proved to be pretty nimble hold up as that gone and can you really achieve the same things when you can't see a patient in. >> it's all about meeting your patients where they are and providing multiple challenges. prior to covid, the vast majority of our care was in person whether in our patient's home or being in our center. we realize we need to continue to care for our patients it's the most at risk from covid. they are also at risk for the other chronic illnesses. we needed to continue to provide great preventative and primary care for them but do it in a different environment. we did both old fashion telephone calls with patients. we still saw our sickest patients and patients in the home we just found a portfolio channel that could continue to

be there for our patient at a really difficult time for them >> mike, thanks so much. we await the opening trade congratulations on the ipo we hope you'll join us again soon carl, back over to you >> the market really being held in some handcuffs here as we look for progress on the hill despite multiple briefings today and appearances by mcconnell, schumer, pelosi all day today and the jobs number tomorrow and given sort of the fragility of the job market, the way adp came in with the miss on wednesday, claims today a little better than expected but still a million plus is going to mean the july non-farm report will be key.

>> it's the end of the week tomorrow i know we'll be talking to dropbox ceo tomorrow. let's get over to the halftime and the judge. >> the judge has some more on third point, disney, amazon. let's get back to headquarters and the judge. we're watching the markets as we always do. nasdaq going for its first ever close above 11,000 we begin with that story dan loeb's third point taking new positions in disney, amazon, a couple of other well known names as well. got to investment committee to discuss and debate all of that let's get to the news we're di