predicted is 57/43 what if someone said go over there and you have a 43% chance of surviving if you go over there, it's like, whoa, hold on, i mean, 57/43, that doesn't say anything to me, does it? i mean, i don't -- are you a 57% chance of surviving -- >> i'm not worried about it one way or the other yes, i'm 100% in agreement with you that it ain't over until it's over. >> i know you are not worried. you know what i meant. anyway, let's go to "squawk on the street." >> absolutely. >> see you tomorrow. ♪ and this is "squawk on the street" i'm david faber along with jim cramer, carl has the morning off. of course, the markets in focus as they always are at this time given we count down from a half hour from now for the opening of the markets themselves jim, again, it is a higher open

that we are looking at, much like we did yesterday where we were talking a great deal about the possibility of a new record even intraday or all time on the s&p. yesterday it was that bizarre russian vaccine news and i think we can all term it bizarre, but today it's moderna signing a deal with the u.s. government which is signing a lot of deals to make sure that there is manufacturing capacity in place to deliver a lot of doses of a vaccine if and when it does get through phase three trials into i was listening to meg tirrell this morning and i was looking at an email how much is regeneron getting. $500 million in july i would say, david, is there any amount that you wouldn't spend on these companies to get this thing beaten because if we're spending $2 trillion to just try to stay in place we have got to flood the market with money.

make it so it's worth wise for everybody. i have emerging bio tonight, they would be helping making a lot of these giant doses and i don't think -- i think that you have to encourage these companies. it is really important, novavax getting a lot of money i want to see j & j and pfizer get the money but they have to do it, david they have to >> and they all will i think this he all will operation warped speed which is the name that the administration has given to trying to develop a vaccine and anti-virals and therapeutics as quickly as possible, there's money for all of them in terms of manufacturing and the department of defense has contacted many of them they are choosing in some ways winners and losers i reported i think it was last week, again, i'm following the merck compound very closely on the antiviral side of course, that has been offered as well. of all of them it's my understanding to money from operation warped speed but your point is well taken which is we need to be in a position when

one of these if not all of them we can hope work to manufacture at scale very quickly. so we're seeing something unprecedented which is the building up of manufacturing capacity before we even know whether there is an efficacious vaccine and or anti-viral. >> it's extraordinary. extraordinary that j & j is committed to -- not committed but spending money to deliver a billion vials of something that we don't even know if it works you and i have seen many different cases where companies have spent a lot of money on a drug that didn't work, vaccines we know are very, very hard to make it's encouraging, i want to see as many companies involved, but, david, in the end you're right, it's going to be the anti-virals that's what we're going to get first and that's because you don't have to do these incredibly long day by day trials look, russia did the opposite. russia basically said, okay, we're giving it to people. that's not the american way. it's not the american way since

falidimde, being a horrible -- something that the fda approved for what is now basically revlamid a terrible drug for pregnant women. we don't want to do that we don't want anything to happen to people. these are healthy people that are getting this. >> i know. exactly. they're healthy people which is different, again, than these anti-virals where you're sick, have been exposed to somebody who is sick, you have a reason to take it and if they work obviously will be a key potentially game changer in terms of the course of the virus and how we approach it in this country, jim for a vaccine you are not sick so you don't want to get sick. >> no. i'm going to try to get the j & j. i'm totally conscious. i think every american should try to get in these. why? because we have to beat this thing. treasury secretary mnuchin can come on all he wants, spend all he wants, but we need an anti-viral that makes it so we can get through this period and then a vaccine so we can be -- eliminate this period. but eli lilly is in nursing

homes, merck is with people who are sick and that's the hope, regeneron with people who are sick we have to differentiate between vaccine and people who are sick because it's very different. >> meanwhile, let's move to the real economy for a second because of course all of this would have the impact on being able to actually regenerate real economic activity in a significant way. we talk to often, it's all we've done for these last months now in terms of the divergence between the performance of the stock market and the economy and it gets us back to washington and where things scan if they stand anywhere in terms of a new relief bill. anecdotally here talked to a friend of mine in chicago yesterday at a -- i'm not going to say which hotel, a major hotel in the city center, 15 people in the entire people. 15 not 15 rooms, 15 people, jim i mean, let's not lose sight of where we stand right now and the continued concern about states ability to withstand huge budget deficits and have to make huge

cuts and the cities that have suffered dramatically across the board across this country. >> i was looking at a note for blinker which a lot of people like, a good company, good restaurant and here they go, they're very happy because they're going to lose 25 to 50 cents and chili's their main brand is minus 10.9 comps. these are extraordinarily bad numbers, but in this era of the pandemic we're thrilled that people still go. i had don wood on last night who is the ceo of federal realty, the largest shopping center, that's open all not mall which is harder and that's david simon, simon properties. they've got restaurants and they are expanding and you can do it, you can go outside, but, david, come the small we have a new wave of covid, come the tall it's too chilly to be outside. that is the argument against going with the industrials, going with the banks and instead sticking with what we all know

are the covid -- cramer covid-19 plays. david, this battle is going on i actually last night said you had to increase some of the industrials. i went on twitter last night which of course i'm taking my life in my hands anyway. roundly criticized for thinking that perhaps a union pacific could rally here even though they have already rallied because people believe we are not far from the promised land david, the promised land is far but you may have to invest in it. >> you mentioned we discussed yesterday of course the significant rotation that we saw in the market to some of those names and how long it would be sustained. i mean, jim, coming back to the real world again, given i have school-aged children and so many friends who do, i mean, this is a continued concern. what schools will open what won't you may have seen a number of major universities going all remote not having kids on campus. we know about college football, what we're seeing there in terms of i think it's, what, the pac

10 and who else, jim you know it better than i do this is coming very soon. >> go big 10. >> we are not going to have a lot of kids or as many as we hoped all back in class. that is a huge, huge impediment to life getting back to normal. >> let's take davis square let's take davis square in boston this is an area that has -- i happen to love it there, since we're talking about tufts, obviously. there are, i don't know, what, about 100 businesses that are adjacent because of all the students or where my wife is on the board at bucknell, probably 100 businesses adjacent to students. >> or harvard square which is right by there, too, which has even more. >> the customers and retail. i remember that brian cornell told me they were going to expand, two notes today positive on target, have small target formats to where there are colleges holy cow, david, no customers. what do you do target fortunately spent more

time doing urban and it worked out, but i just feel that we are underestimating what will happen to whole cities where the cities are directly involved with the university thousands of people and what happens when you have thousands of people do not go to big 10 games? i mean, this is america. i saw the president tweeting we should play football obviously we would love football we are a country where the big commerce elements happen to be when we gather and, david, we can't gather i don't know what happens. i'm watching them talk about how people are gathering at a shake shack in china they have that ability because they put down the virus. we can't gather but we are a gatherer country >> we are. we are and of course obviously college and universities is all about congregating as well jim, i want to take a quick diversion here to talk about my friend sumner redstone who passed away at the age of 97.

>> your friend, that's important. you knew him better than anyone in the media, i'm anxious to hear what you had to say because he was a great man. >> we spent a lot of time together through so many of his active years putting together the company that we today know as viacom, cbs i enjoyed all of those times, both when the cameras weren't on and when they were and i will miss him obviously he has not been in the public realm for some time and i have not spoken to sumner in quite some time. he does passed away at the age of 97 leaving a very big family as well. i think we have a statement from his daughter sherry who has obviously taken his place to some extent at least although she is not running viacom, cbs in any way the way that he did as ceo for many years. my father led an extraordinary life that not only shaped entertainment as we know it today, but created an incredible family legacy. through it all we shared a great

love for one another sherry redstone goes on to say he was a wonderful father, grandfather and great-grandfather, i'm so proud to be his daughter, i will miss him always. >> david, how involved was he in terms of the split of cbs splitoff because it didn't work and i had found until that he had the magic touch. >> he did. you know, he and i had discussed it many times in terms of whether he acted rationally at the time because he was frustrated with the stock price or perhaps because he wasn't ready to make a decision on one leader for that business and you're right, remember, he had built this company, first by the leverage buyout of viacom in 1987, i believe it was, when he was just turning 60 years old, he sort of began his public career really as a media mogul, moving from there the acquisition of paramount, the big fight with barry diller that he had to acquire that business i think it was over $10 billion.

i remember covering it for cnbc at the time, although then mr. redstone and i did not really know each other. we would get to know each other quite well in the years to follow he bought blockbuster, then came cbs, then came mel carmizen. that was not a great marriage. then so many other -- so many other things along the way so many fights so many battles, jim, but you're right, the split was something that was contentious and i did ask him during one of our interviews about whether he had a short-term focus to the detriment of the long term here is the back and forth >> do you think that you hurt your own ability to think long term by being on the phone every day? >> no. >> getting quotes on the stock. >> i'm not getting quotes. >> you are running the buy back. >> i'm buying the stock buy back, we're buying a lot of stock. >> that's so short perm. >> why no. >> what do you mean why? is it 35, 36, 37.

>> wait. we are not buying the stock to drive t we're buying it because it's so cheap. >> some of those favorite words, of course, buying it because it's cheap viacom is cheap. viacom slt greatest stock in the world, the greatest company. of course, felipe was not the greatest ceo and that was a decision i think that sumner eventually came to regret of course the man who ran viacom for many years benefitting from an enormous buy back using that cash flow but not really positioning the company properly for the digital future, jim. >> david, but contrast him with really a man who i regard as a great american, jeff [ inaudible ] when confronted by me and you and talking about what can happen with that stock talked only about the long term. i know i wanted him to take radical action and he just -- which would have been similar to what redstone did and he dismissed it, but he created tremendous value before riding off in the sunset. very different people.

>> yes, very different people. that said first of all, mr. redstone was an extraordinary intellect, i don't want to forget that. graduated harvard law school graduated harvard law school. >>est that the best school in america. >> yes, somebody who went. was a code breaker during world war ii he could speak japanese. >> could he do navajo, too that's incredible. >> he was a code breaker, a great pianist. he was in many way just a unique individual was sumner. you're right, he was very focused on the stock price day to day to day, focused on it being a reflection of his own performance to some extent he did tell us content is king, jim, and you and i certainly still believe that and in many ways i think that will be one of the things that we most associate him with, that quote. >> you remember, david, when we

were shocked when netflix passed the market value of these companies and we thought a that netflix was wrong, it couldn't be and it turned out netflix was right. now, was sumner -- was he proficient during that period when netflix took off? >> yes the landscape has changed dramatically, but i do think that the quote content is king will live on many years and certainly we are saddened to hear of the passing. >> dave, you know what the one constant is here, you look exactly the same. >> you know, he argued with me about that because he loved this diet that he was on, he was determined to live forever he once told me that he would, you know, miss me when i was gone but he would say a nice good-bye for me. >> oh, my. cryogenic. >> but that was sumner, man. i mean, that was sumner. listen, a guy who hung from the

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five for one stock split they wanted to make their shares more accessible to employees and investors. the split will take effect on august 28th to shareholders of record of august 21st and it will begin trading on a split adjusted basis, jim, on all 31st i can remember back in the '90s when a stock split would be enough to send a stock up dramatically we need to tell people it's not changing the value of the company, it's important, particularly for the uninitiated. it doesn't mean the value has gone up. it's just more shares, or -- yeah, more shares at a lower price. >> i always used to use a pencil when i was on tv where i would split it in half and say do you really have more pencil and the answer is obviously not. david, we do have a cohort of investors who genuinely have seen only these stocks that are $1,000 stocks except when stim cook split before and tim cook splitting again and it turns them off we should say it doesn't, they

don't want to buy one share. look, this is not like going to a mall and buying some great italian jewelry and if they split it 100 pieces it would be really terrific. it's really something that is daunting for individual investors. i am all for the split, i am not for buying the stock ahead of the split. i just like it because these new investors that have been brought in of late and how they would really want to take part in a tesla or an alphabet, for instance they just -- amazon and they just feel like, do you know what, this one i can't do, the same way berkshire couldn't do it a lot of the companies when i speak to them say the big constitutions don't want it because they have to pay more commission per share i think that's nonsense. the best shareholder you could have is an investor small person who wants to stick around. i am all for this and my view is it's creating value.

it is bringing in new people which i think is fantastic for the dinosaur collection that you and i have become. you are a stega, i like to thin i'm a we will os raptor. it can happen. we are not talking about dinosau dinosaurs. >> it is a revitalizing thing. we want them to participate in the capital markets, we want them to actually understand what's going on and to understand the underlying metrics of what values a company and how things work, but, yes, without a doubt. and it's funny, jim, i almost have lost sight of the fact that google is $1480 and amazon is $3080. >> it's a price tag people can't get used to so they don't buy and therefore they miss the run from 400 or 300. i applaud these people and hope

that jeff bezos watches and says, all right, i want some of those investors, too >> tesla going to be up. we will keep an eye on the others as well i think we will have a mad dash on the other side of this, counting you down to the opening bell as well, nine minutes from now, looking for a higher open re" mi rwkn e ua oth stetcongight back.

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it's wednesday or as jim and i like to say hump day and there's a look at how we're going to open a few minutes from now. stay wh o"sawonhe street."k t

>> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. let's get to a mad dash. i get you are a gluten for punishment with this name, jim, in terms of discussing it, it's always been a battle ground hasn't it. >> a stock that came public in 1999, plug power why i bring it up is because it's a popular stock among younger people people feel just like ev we can talk about nikola, this is one about hydrogen they bought -- i had them on recently, they bought two companies, one is a hide dren merchant company and they have a hydrogen storage business. david, this had adjusted ebitda positive, you like gaap ebitda, didn't money make any money.

i think this one flies why does it fly? because this is not the old plug power. they do have -- they have forklift businesses with amazon, home depot and walmart, but this is kind of the market as we don't know it but many do know it a $10 stock that could be the next novavax, the next sorento, that's what people are in for and i'm saying we must get used to this, i had plug power on because the new people deserve to he no the facts and not just the chart. >> okay. why was the stock looking down as much as 9% before you began talking? >> this is a pretty big slug of stock and they need the money because they made big acquisitions and i think people don't understand a lot of the younger people don't understand you can do an equity offering, a lot of the cruise ships did it american air did it. if you wait long enough and the business turns around it's a pretty good thing to buy in this case plug power's

business is growing and so i think you want to watch it to get the temper of the times not recommending plug power recommending watching plug power. if i want to recommend something you know i have to wait until midday because everything is up so much it is a little taking your life in your hands to say today is going to be the recovery day versus today being the day where we buy the covid stocks i use wells garg goe as the recovery stock and i use nvidia even though it's not really involved with covid, i use that as the great momentum stock that benefited during this period as you mentioned yesterday the best acting stock >> nvidia, right, the best performer and a name to be, you know, i always like to come back because you get so much grief sometimes, jim, that you've been a proponent of that and amd for years. >> my wife says -- >> incredible creators of value. >> forget the criticism. david brings us the stocks that you got right so thank you, david. of course, she does know i have

a show she does know i have an evening show but she happens to like you very much. you know that. she thinks you are a great guy. >> i do. i do and i like her as well i like forward to you two getting together again and seeing each other more often. >> one day >> jim, there is the opening bell this morning, you can see the nyc of course and that is our realtime exchange back at headquarters also a tribute on the nasdaq to sumner redstone of course who passed away this morning at the age of 97. life and legacy of course having built viacom, cbs, whose headquarters by the way, viacom right across the street right there on 43rd and broadway unfortunately, jim, back to our conversation about the economy, many of those office buildings remain lightly populated even though you can come back so many businesses not sending people back, so many businesses not talking about sending people back really now until the end of the year, we've made note of course of some of the larger

companies have said you can wait until next summer. it continues right now even though many people might be antsy to get back to the office and there is the economic toll on so many of those businesses that rely on people coming in and out of major urban centers every day. >> i'm glad you mentioned it because i think there is a perception that as jamie dimon said yesterday on the "today" show, look, you want everybody back wanting everybody back and getting everybody back are two different things there are lots of people who feel that they are at risk that don't want to go back. they don't want to touch the elevator button, they don't want to be in the elevator with other people, they feel like they can wear a mask and others can wear a mask, people are too close to each other yes, you're absolutely right one of the things i talked about with don wood yesterday, he has mixed use, also has offices, too, and he's trying to fill the offices. david, it is something to behold

that people found that it was really easy to work at home and by the way do you know what's not talked about enough, it's cheaper. >> what? >> it's cheaper to work at home for companies. >> yes. >> and they're finding that out and they want to get out of these leases and i think it's important to recognize that it's a beneficial thing for a lot of companies to have people work at home because of zoom which is the stock that has been under tremendous pressure the last few days as people feel that we are in the recovery mode obviously zoom can't do as well if we are back in recovery the stock can't. but the world is changed the world is changed. >> it has. >> it's great to work at home if you have kids, it's great to work at home if you want to catch that game if we ever go back to having kids go to school and it's not so great to go to work at an office building in a time when you're worried about germs. >> that is true. that is all true and that is why i think, jim, you and i may agree that it may be until we have a vaccine or

effective anti-virals that we don't see en masse people are your honor to their office places even though i think many people are getting tired of this just anecdotal, talking to the people who i speak to who allocate capital, deal with people, whoever it may be throughout the course of the day, i'm getting the, do you know what, five months is plenty, i'm getting tired of this not everybody, but more and more from those early days when people were sort of very refreshed about it. >> i saw one of my best friends who does contracting work for me, contracting work with me last night and i wanted to give him a hug and then i realized, hold it, pandemic, stay away enough enough i mean, there are people i want to shake their hands, i want to give them a hug. yes. and of course anyone who is sick or anyone who has lost a relative, i mean, that's far worse, but i know that there is a sense that, okay, we've done this, let's move on, but you

can't. >> no, you can't and it's funny, you know, that argument about the commercial real estate was, well, they are going to need to space workers out more but i'm getting more of the sense that nobody is coming back in full until there is a vaccine. it's simply going to be to your point trying to lesson their footprint because now they know 20 parse, 25% of their workforce at any one time with effectively work remotely. you do have to wonder about the future of commercial real estate at least for the near term. >> i think commercial real estate thrives on mass transit and my friends who -- again, it's anecdotal who went on mass transit are done they're not coming in. they think that mass transit is an incubator and the part of the country that doesn't have mass transit has had far fewer deaths >> that may be true although recent studies indicate, for example, the new york city subway where everybody is wearing a mask there has not been signs of transmission at this point, i think you're right, fear will dictate, fear

will win out, but in so many things where we try to get to the facts here, jim, they may be somewhat different than the reality. >> you're right. >> i should say the reality may be different than the concern. >> aerospace, airlines, since masks, david, you don't hear about sickness because there isn't sickness. >> nope. >> but when you bring that up -- >> everybody wears a mask. >> how could they not be the incubators, the answer is people wear masks and now there is still a mask debate, i say that slower than other things, but when you're with someone like from owens and minor which is one of the largest makers of masks, they have the halliard mask, looks like orange on the top and white on the bottom which makes you look like a duck which is funny but they're n95 the ceo said two masks, no death. it's pretty simple there are people who rebel and

they -- their cause -- they are -- they are james dean they are truly rebels without a cause. >> they are. and we can just continue to encourage people as we watch thankfully the infection rate start to decline in hot spots in the country. jim, let's talk about the markets a little more focused here the banks we put them up there, they are val seeing today. >> extraordinary. >> wells fargo amongst them. at the same time morgan stanley is positive for the year that may be the result of their fortuitous acquisition of e-trade whose business has never been better. >> right. >> as well as the differentiation of their business versus a goldman sachs, for example. market cap of morgan stanley now $10 billion more than goldman sachs. >> that's incredible look, we have to -- james gorman has put together a franchise that i think deserves to sell at 1.3, 1.4 book. david, it doesn't have a lot of risk to it goldman is at book, it's a dry cleaner, they take the stuff in,

put it out, they have the marcus business which is going to be good jamie dimon yesterday telling you that business is quite good. we don't know yet from charlie charlie sharp has inherited a franchise that would we ever realize that -- isn't it incredible that it is by far the worst? wells fargo, by far the worst. >> yes, by far the worst. >> by far the worst. to the point where i worry about what can happen but i think it's a coiled spring, but this move is about fewer defaults and that has not -- it's not true it's not true. what do you do, david, if you look at the actual eight case, if you look at the actual businesses and the defaults are piling up and yet the stocks real, what do you do >> i don't think you buy them, do you, jim? >> no, and that's why you buy morgan stanley because they don't have that risk it's true that the assets go out the door every morning, but

gorman has reinvented the franchise. i am suspicious of that move, but i do think that momentum is an extraordinary thing and the momentum into the banks is almost as if they're saying they have to play catch up, not unlike the autos and i struggle with the that once again i think that the big growth stocks that are involved with being at home are going to go down i just think they are. there's not enough capital for both, david. there's just not. >> right although this morning with the s&p up almost 1% and getting awfully close to all time highs, jim, we do have sort of a broad market rally we do have the growth names. we have apple rebounding, we have facebook up 2%, amazon up 1.2%. >> right. >> we are not seeing that diversion we saw yesterday or what we call rotation where some of the cyclical names are benefitting as you pointed out perhaps for a short time it would be but today it is more

broad based. >> i have my tells fastly, crowd strike, z scaler, ring rental, these are companies i have quite a bit and their stocks are turning red and octa is probably the key, that is the one that sells at 30 times sales, david i look at those stocks and they tend to be -- they are the leaders in terms of what's going to happen. i know i want to follow faang but it's octa that tells the tale as strange as that is but it is a $30 billion company and it is involving if you have to toggle between various spreadsheets and microsoft versus google if you want to -- if you have to toggle between which is like a younger person's job obviously, then you use octa which is the passport on to the web, it's a $24 billion company. keep an eye on it. it has led the market down and then it tends to affect zoom videos. >> it trades at 30 years' worth of revenues right now. >> yes. >> that's what it's being valued

at. >> right. >> but obviously we expect those revenues are going to grow very, very quickly are you questioning at all its growth rate? >> todd mckinnon is fantastic and you need the product, it's a necessarily. i'm not questioning his growth rate, i'm questioning what we will pay for the growth rate this is a best in show company that has been a leader i know we want to say facebook is the leader and i'm interviewing sheryl sandberg today the coo but the one i keep an eye on is octa because it is the envy of everyone in silicon valley and doesn't get talked very much. >> and always a good time to promote our small business playbook you can see it of course and learn more at cnbc events.com small business playbook. she recall sandberg is coming on when >> this is an event that is -- you subscribe to i'm interviewing her 3:45. >> it's today at 1:00, that's you doing the interview. got it.

>> david, i think that it's very interesting while we bring it up that facebook was the flash point for biden, for harris, both of them have questioned whether it is -- it should be broken up and it's very interesting because obviously harris is actually close, fairly friendly terms according -- with facebook coo sheryl sandberg and i think it's important to keep an eye on who wants to break up what because the democrats obviously don't like concentration of power among tech >> yeah. jim, it's been a little while since i mentioned spacs given the -- well, i mean, like everybody has got one at this point, a spac and a dream. >> right but navarro, by the way -- kodak was not his spac that was being facetious. >> it was not his spac. >> yes. >> we were being facetious when we talked about kodak which did have an earnings call yesterday, not much to share for what came out of that in terms of the

prospects from getting that loan from the dfc or whether they have a shot at it. didn't hear too much from the company -- he is exec chair, he is ceo of a different company. >> it's kind of fun -- mcdonald's used to look into things like what happened with easterbrook and he's giving stock and they didn't bother to get the emails, they didn't look at the email those were things -- david, the justice -- the sec -- is the sec going to be canceled >> by the way, it's the pac-12 and the big 10. >> but the sec when they think of it being canceled is it the one in washington or is it the one that has the really fast guys that tend to get drafted? >> i got the joke. i got the joke no will they look into this who knows. >> i just came back from california and my arms are tired. >> the politicization of so many things are unique in some ways,

others will argue with that, come back to tiktok and microsoft and whether another company would emerge there. >> that deadline is coming up. >> what i continue to hear on that, jim, is the difficulty if you were another company, well, does the can't like you? do you have a shot could you pass national security clearance? what will come up? what will you deal with? it's somewhat unique >> [ inaudible ]. >> on the spacs you have the billy bean pricing tonight, i think it's half a billion dollars. >> small ball? what's the name? >> it's red bird, right? red ball sorry. red ball. >> red ball. >> red bird is actually cardinale's fund, but they conceivably will be looking for opportunities to almost take a sports franchise in some way public it's possible or merging a data business in some way or getting something along those lines public there is a look at beane they will price that deal tonight. there may be liquidity needs

among owners of teams you can imagine, jim, given the problems right now in terms of not getting any tv revenue. >> you are so right. we haven't even talked about interest rates going up. still the rates are low enough david, that's brilliant. >> yeah. >> that's brilliant. there's got to be teams, small market teams that rely on it >> yeah, red ball. and then also dragoneer, private market investor in alibaba, lazian, is that how you pronounce it data dog >> they both missed the quarter so to speak. they did not blow the numbers out. >> 60 million shares at 10 bucks for dragoneer. >> don't forget tontine. >> i know somebody else keeping an eye on them and that's bob pisani keeping an eye on the broad market. >> the spac business is just amazing how it's blown up and it's obviously people are

seeking other sources of liquidity and the spacs are providing it doing a great job covering that, david. it's been a great open, six to one advancing the declining stocks, breadth has been expanding that's one of the bull arguments we've been seeing, slight value tilt again today but not great. all 11 sectors opened to the upside so banks are up, energy are outperforming, industrials doing well, tech is doing equally well apple is supporting the dow, all five mega caps opened to the upside, health care is lagging a little bit still a value tilt but tech participating, you get a powerful rally what's going on in the last 24 hours? we moved 50 points yesterday, 30 points in the overnight. i don't think the narrative has changed. i'm struggling to say things are different. i don't see it i know there's question about the stimulus we don't have a date for it but the deal is coming the market believesthat. that's the most important thing. everyone believes the fed is going to do something in their september 16th meeting, maybe

even talk about some expanded qe program, a lot of expectations around that. earnings have been largely above expectations we've been talking about these 22% beats for most of the s&p 500 that's amazing. as for everything else economic data has been above expectations as well. the valuations, yeah, the bears are right, it's an expensive market, we're trading at close to 20 times 2021 numbers 20 times one year ahead of us that's an awful expensive market and the bears have a point about that you want to see what the market really wants, they want to hear, yeah, things are lousy but are getting better blinker is chili's, a restaurant chain, comp store sales down 36% but that was about in line the numbers themselves better than expected and the guidance for the following quarter, the quarter we are in now generally a little bit better than expected yes, things are lousy but getting better, that's the central story, that's eats story and that is the central story for the market and why it keeps holding up so well the rotation story, i don't know, it's a little bit overdone

i think. we've seen in the last few days the banks, industrials, energies have outperformed, tech has underperformed, okay, only the last few days. what's led the rally is technology stocks and some consumer discretionary like amazon, for example, that's the big mover here, but tech is the big mover overall and particularly mega cap tech we keep emphasizing how important those top five stocks are. since the top february 19th amazon 42% i can't emphasize that enough and how important that is in moving not only the sector but the overall market look at the big moves up in the big cap tech names here. what's lagged the rally i know we are excited about bank stocks moving in the last four days, but, look, industrials, banks and nrjs have been big, big laggards overall david, there is a big question about what it would take to get money out of tech because the big money is still in technology clearly. maybe if the fed would disappoint, maybe if we got imminent news of a vaccine tomorrow, maybe something would make a difference to dramatically broaden out, but

for the moment the big money and volume still remains in technology david, back to you. >> bob, thank you. bob pisani from bob to rick let's check in on fixed income markets this morning rick santelli, take it away. >> good morning. good morning, david. you know, we had our second of inflation data, ppi yesterday, cpi today both were hot. clns price index personally hot up .6 on headline and ex food and energy you can see on this 24-hour chart we've been moving higher pretty much for the last several plus days. remember that on the 8:30 eastern number we were a whisker shy of 69 basis points, open the chart up to mid-june if we would have stayed there and closed there it would have been best close since the third week in june but as it stands and you see on the chart we are hovering at best levels since july but we are losing ground. we have a ten year note auction today at 1:00 eastern i will be covering tens minus 2 spread from july 1st.

this spread is really starting to steepen out over 50 basis points deep an eye on it if it gets above 53. finally july 1st start of gold, it was four sessions ago it made its all time high close at around 2 organization 069 we have saved $100 off and it has nothing to did with inflation or the dollar just logistics of where all the trades have been located. jim, david, back to you. >> rick, thank you rick santelli. as we give you a look at the market here we will head to break. jim and i on the other side i want to talk qualcomm if we get a minute because an important victory in an appeals court there that is worth mentioning this morning a lot more "squawk on the street." coming right back.

welcome back we did want to look at shares of qualcomm it was such a tumultuous year for that company, but one of the keys was that loss in court over that ftc case that ruled they had monopolized the use of their chips. they got a very favorable ruling in the peals appeals court, that -- were anything more than lawful attempts at profit maximization >> this was so overlooked by the

analysts i thought this was gigantic. this has always been a patent situation. we know that mallonkof is more of an engineer type than a salesperson, but whole cow, what a move there were people wanting to buy it >> yeah. listen, i mean, they were involved in so much litigation through the years. >> with the chinese. >> so many things. we were talking about government intervention let's not forget when cynthia said, no, you can't buy qualcomm and ended their hostile bid, but it ended up being a good thing for the shareholders those are new recent highs >> and the just say no turned out to make a lot of money for people, which is not usually

what we see. i remember david going to a fabled dinner with and some of the representatives. i thought it was a done deal for broa broadcom, what was it an 1840 bottle of wine [ laughter ] all right. jim, we're going to take a qckui break. a lot more "squawk on the street" right after this whoo. i'm gonna grow big and strong. yes, you are. i'm gonna get this place all clean. i'll give you a hand. and i'm gonna put lisa on crutches! wait, what? said she's gonna need crutches. she fell pretty hard. you might want to clean that up, girl. excuse us. when owning a small business gets real, progressive helps protect what you built with customizable coverage. -and i'm gonna -- -eh, eh, eh. -donny, no. -oh.

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call, click or visit a store today. take a look at the gainers this morning you can see, led by tesla, of course, with the expected split coming up toward the end of this month. liberty global also a big winner this morning, making a tender offer for sunrise communications we have a lot more coming right back.

let's get to stop trading with jim. >> penn national gaming is a company that a lot people felt when football like the big ten and pac-12 would withdraw, it would hurt the stock notice it's not. i did reach out to him about splits, and he says the more splits, the more stock, more, more, more of everything this is david being tongue in cheek. i want people to realize, you can follow him he's not saying he's the great investor he has fun, he likes it, but

most importantly there's a big overlap between stocks and the sports book, and penn nat is doing quite well tonight i have cisco after earnings, and ebs and then j-com, it looked like they put that short to rest thank you, david >> jim, thank you, my friend i'll see you back here tomorrow. let's get started with the 10:00 hour of "squawk on the street." carl has the morning off, as we keep as eye on the markets technology, jon, sort of, well, we see it right at the bottom there, leading the dow at least high other as well, apple, for

example. tantalizingly close for those long on the stroke i remember, guys, not too long ago when apple was approaching $1 trial won and people were talking about the law of large numbers? >> the law's been broken apparently $2 trillion, next it will be $3 trillion before we know it -- if it continues we'll see. if it does continue. it does today, but we are talking about a much broader-based rally. the likes of caterpillar today we're seeing the banks off, but we're seeing the big technology names lead once again. i want to talk more about the broader market and bring in david herro.

know your focus is in part on overseas, but give me your tack on where we stand in the u.s. >> i think some of the trends you see in the u.s. are true globally you mentioned recently the underperformance of the value and the old kind of industrial business stocks versus the technology stocks, and of course the last couple days, just reversed a bit, as a value investor of someone who prices businesses based on cash flow streams, clearly we think this trend has a long way to go that is the trend towards companies that really have visible good long-term earning streams that are priced at ridiculously low prices. in fact, it's probably amplified when you look at european industrials and financials, this trend. to us this means opportunity for investors. if you're a trader, it's a different story. if you're an investor with a

two, three, four-year time horizon, this is the time for buy these quality businesses at low prices, whether they be in the u.s., or whether there is accuse undervaluedness in europe >> tell me a bit about europe. it's not something we focus on quite as much. what are the multiples in some of the industries that makes them, in your opinion, cheap >> if you look at the financial sector in europe in particular this is whether we're talking about shuns or banks, assets managers we're looking at valuations very, very similar to where they were, 50%, 60% of book value,s as where they were in '08 and '09. yet this time around we have a much, much stronger capital position now, the stronger capital position does mean lower normalized returns, lower normal return on equity however, on the other hand, they have become less dependent on

interest income, more dependent on such things as asset management feels, selling insurance, trading, et cetera, which has given them the opportunity, despite the low interest rates to grow their earnings we're growing earnings we have the capital where it's supposed to be at and you have valuations at or below where they were in '08 and '09 i think this spells a real opportunity. the only negative that i can see is that dividends for european banks have to be forgone into early next year. the ecb won't let them pay the insurance companies could pay, but europe kwan banks can't pay their dividends yet. >> david, i'm curious about the gdp declines about 20% and whether that indicates a potential bottoming of the

economy over in the uk, and where you see pockets of opportunity elsewhere in europe. >> that's a really good question to highlight this. the uk came out of the covid lockdowns much later recall prime minister boris johnson got covid and struggled for his life i think that had an impact the rest of europe came out in april and may. kids were going to school in germany in late april. because the uk waited so long and things were shut for so long, you see this reaction today. now, this just means that the recovery, if you look he at the data of the manufacturing starting to perk up, even some of the retail sales are starting to perk up, i do believe there would be recovery there, but it's lag versus the end of europe europe opened in many instances before some of the big places in the u.s. did

this is why we're seeing better economic data and better employment data than even in the united states on the continental europe, which gives warm-up a further reason to be positive on some of these beaten-up continental upian industries like the industrials, like the financials we're starting to bound pretty strongly out, but the share prices have barely moved up. they moved a bit, but not at all reflective of where our valuations you are today. >> david, as someone with an eye for value on a global perspective, i'm curious what you do with tech near. you got out of apple in the last quarter, i believe, but it seems like you make a decent case for alphabet. >> we still own some apple, but you're exactly right, in some of or portfolios on the domestic side

we still own google. and alphabet is a value stock. when you look at the strength of their balance sheet and take the cash out of the market cap b, if you look at the investments, the things they have put money and things they haven't monetized like youtube, this is a company that still trades at a discount to us that represents value, given the quality of the business value to us defines the combination of low price and high quality of course, one should be willing to pay a higher price for higher-quality businesses. i think alphabet in particular fits that bill to us this is why you'll see in our portfolios, global and domestic, still a very large position. thank you. >> thank you for having me on.

>> take a look alternate this, an explanation of moderna's surge overnight. stayitus wh introducing stocks by the slice from fidelity. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today.

we have some fresh comments. >> boston fed chair going further than other fed officials i've seen so far criticizing the reaction and the efforts of states to control of virus he's saying, pointing to a lot

of graphs and charts he's presenting, saying lifting restrictions too early hurt the economy and public health. he says the recent slowdown as a result he believes is likely to continue and the continued spread of the virus he says will slow the economic recovery, including this ominous forecast he warnings that the stimulus from the fiscal side cannot fully offset the economic drain from the public health crisis. here's a quote from the speech he's giving at the time -- of severe illness and possible death, but are also likely to prolong the economic downturn. fed officials so far have warned

this could be the case he's in charge of the main street lending program that's had a slow uptick. he says he's glad it's around in case things do get worse in the fall. >> important comments. the. the president announcing a deal with moderna, following a similar agreements with us now on where we stand on the race for a vaccine, and the pandemic's impact overall, fred hassan, also a cnbc contributor. fred, good to see you. good morning. >> great >> especially in light of what

do we have to do to get on better footing this could be a lot more it's the worst-case scenario the problem with this virus it's also very treacherous. it can go past 1, 2, 3, when it goes to 2, 3, it goes exponentially. that's why there's so much distress around the word it's around the world. we need to fight this. now, there is a war here that's at work here i personally am very optimistic we're going to get a vaccine

even earlier that is the second half of next year, probably as early as the first half of this year, and maybe at the start of this years it just looks like so many people in the game, about 165 projects at work, and we have multiple modes of action and multiple molecules here. in fact there's so much going on, that many people are not going to make money doing this, but i'm glad the race is on, and we're doing great. >> fred, how important is process. they certainly say they certainly ven gown through the date could the u.s. -- how important is it to actually show the data

before you asked people to take this this. >> so it's a -- it's often seen in common colds. it's likely not to be a problem, but you do make a again netticification there, and make some kind of reaction that's not nine at this time i think what people have decided to do is see if they can vaccinate people rather than have them be close to the virus they would rather see a side effect -- if there is going to be a side effect than have the population exposed to a virus. here in the u.s. and in europe, we tend to be isciplined, and the pressure is huge very similar to when hiv was there in

the late '80s. the officials are doing a fantastic job, working in real time and my own account is very height in the fda that they're going to do the right thing. they anouned they'll be transparent and everything will be out in the open and if they see something good, they're going to move very fast. so great partnership here. of course there was never a vaccine for hiv. it's a cocktail of antivirals that neutralize the virus. i wonder are are we not talking enough, but that early on could stop the progression of the virus?

that's a very, very good point it's truly a tragedy we failed to get a hiv vaccine i have to give a lot of credit to merck they tried very hard it was just one of those situations where it was hard to be able to get -- in the real world in this case, the cocktails are very promising in fact they already have it for ebola before covid hid they are very optimistic, that their cocktail will likely be the first one to take care of this problem if you've been exposed to a virus, let's say somebody in the household got infected, it's better to take it proflackically

at that point -- and controlled -- it's not just -- there are others more also in this race. >> important to understand that and important for people to have confidence that whatever comes out is worth taking. thank you for being with us. >> thank you. time for our etf spotlight, taking a look at u.s. consumers goods. we're talking about the one and only tesla now shares up more 250% so far isth year. we're going to take a quick commercial break stay with us

this morning we got word that summer redstone died at the age of 97. he's a man i knew well, following his career for so many years. he was at the center of the growth of media in this country, having coined the term "content is king," which many of us still believe is true. he rose to prominence throughout during the last 30-odd years or so he was my friend

he was funny he was incredibly smart, and he was, as so many successful people relentless. here's a look back at the life of mr. redstone. >> i think most really successful people, maybe not all, are motivated by something other than the desire for money. if they're going to succeed, they can't be motivated only by the desire for money they've got to have that passion to be the best and to win. >> sumner redstone loved to win, in a career with plenty of confrontations and rivalries, along with blockbuster deals he usually did. as the chairman of viacom and cbs, he followed the belief that owning content and not distribution was the key to prosperity you have said for many years content is king. >> that is my quote. i coined that phrase

now people are beginning to realize it now content is king. >> a man often in a hurry, he graduate fred harvard in 2 1/2 years. he didn't start building his media empire until the mid '60s. after returning from world war ii, he got a law degree, and in 1954 joined his father's movie theater company, national amusements the company thrived under his leadership by the 1980s he had built a chain of more than 400 theaters. then he set his sights on a bigger prize, viacom, a company with a tv syndication unit and to fledgling cable networks, mtv and nickelodeon. when you look back on your career -- >> that was the most important move i ever made, the acquisition. >> he risked his entire fortune,

beating back viacom's management, which was also trying to buy the company. his next win came at even greater cost redstone went head to head with barry diller to buy paramount, walking away from the prestigious prize for a cool $10 billion. in 2000 the 77-year-old redstone capped his content-consolidating strategy with the purchase of cbs. the deal would bring together the cbs television network, more than a accident cable chance, infinity, simon & shuster, and outdoor advertising. redstone had won again. >> wait, wait. >> no, you wait. >> no, you wait. >> it wasn't always easy in 1979 redstonefaced a fight for his life, hanging with one arm from a window sill at boston's copley plaza hotel while a fire raged inside.

>> i remember trying to get to a window i was burning from my legs up. i tried to open one window, couldn't, finally got to at window -- >> with hess right hand permanently disfigured, severe burns over 45% of his body, redstone spent months in the burnant at massachusetts general hospital >> the desire to win and not give up i think plays a big role in saving the lives of any person, whatever they're afflicted with. >> you kind of expect you can cheat death, it sounds like. >> no, i know i can't, but i'm going to try i don't president to die i love what i'm doing. >> reporter: in 2005 he reversed course, deciding to split up his empire he said as too nimble companies,

one wouldn't be distracted by the other. you've received a lot of criticism. >> if you go into the investor reports at the time, 99 said i did the right thing. >> his son brent sued him this 2006, accusing redstone of cutting him out of the family business years later, redstone battled with then estranged daughter sherry for future control. in 2016, the two reconciled amid st. legal ballotses between redstone and his girl friends. soon after, she began to bring things back together. >> i love viacom i love cbs so i don't want to die i have a will to live. the same will to win that i've always had, and therefore i'm

going to fight death as long as i can. i like it here i don't want to go anywhere else >> a life lived to the fullest, sumner redstone passing at the age of 97. ♪ ♪ ♪ ♪ wow. jim could you ipop the hood for us?? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids.

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welcome back here's your cnbc news update at this hour. a demonstrations in richmond, virginia, turned violent about 75 people were protesting for social justice when apparently things got out of hand several buildings were vandalized some arrests were made. at least three people were killed in indy over a india, and then police were forced to fire live ammunition. at least 60 police officers were injured. more than 110 arrests were made.

those who made the post has been arrested, and claims his account was hacked that's a wild horse swimming toward -- you can see the boar making a quick getaway no injuries were reported. leslie back to you. >> those boars are deceivingly dangerous, though hitting him with a shovel, i don't know. >> very conflicted, yes. >> a bit abusive thank you so much. we're getting breaking news right now out of uber. de deidra bosa has that for us. the ceo saying for the first time he may shut down the app entirely in california if their appeal is not accepted by the court. he made the comments on msnbc. they come after california judge ruled earlier this week that uber had to treat its drivers as

employers immediately. they have a ten-day stay there may be some bringsmanship going on rather than bringing over 100,000 drivers as employees. they that yesterday on "squawk alley" we spoke to california ag who says that -- and i asked him if he thought uber would go this far. he said any business model that relies on shortchanging workers in order to make it probably shouldn't be anywhere, whether california or otherwise. shares in both uber and lyft are up remember, these expectations increasing regulatory pressures are well built in. though if uber does shut down in california, l.a. and san francisco are two of uber and lyft's most important markets. >> it's a risky gambit

one, there's a partial shutdown, and then lyft isn't saying they're going to shut down it's not like people don't have options. >> that's right. it could push more people towards lyft i think what i have heard is the idea of just bringing on over 100,000 drivers as employees is just too much of a logistical nightmare. remember these companies are already bleeding billions, in uber's case for a year as you know, he wrote an op-said saying they want to find some kind of middle ground and this will be brought to voters in november the urgent question for investors is within less than ten days, does uber actually go so far to shut down the app.

thank you. let's move on to spacs or stranger is no stranger to spacs. today he's revealing details of a new blank check company. its name is harvester acquisitions he is sir martin franklin, i think. founder of jordan group, also co-chairman of the api group martin, always good to see you the last time we spoke, you did indicate that the spac market was getting frothy you did make the point it was in the u.s. i know this is uk-based. it's somewhat surprising to see you back in even when you did seem to have reservations. why? >> well, i can't overemphasize what i do is very different from the u.s. spac model. i'm not really looking for the

same kind of opportunities i'm trying to buy very profitable businesses, market leaders, great management teams, not necessarily storied stocks and high growth. that's what's going on in this spac market in the u.s. today. what i do is much more fundamental, so it's very different, much more like a private equity house would do or a corporate strategic. so, you know, i'm going to raise probably about $750 million, maybe more, through harvester. it will be in partnership with viking global, who i think are larger investors in j-2. api put out earnings this morning that the business is doing tremendously well. stock is up somewhere between 40 and 50%, so we're very happy with the trajectory.

it's a well-run business, and the same kind thing i hope to do with harvester. >> martin, there are differences between the so-called rules for spacs in the uk and the u.s. simply put, i think in the uk, holders have fewer rights, don't they which may be an advantage to you, but perhaps a disadvantage to them? >> it's an advantage to the investor if you want to buy he quality companies, but you have to run around to maybe get the vote, perhaps you have the money, perhaps you don't, i call that faux capitalism. when you go into serious conversations with companies that have up choices, have that uncertainty is a gaiting light in my opinion that's driven u.s. spacs to do deals that i would

call suboptimal. i know it from experience. the first three spacs had 8 or so in equity, which were the pioneers of what became the more institutionalized scale spac business but, you know, if you can't deliver certainly, there is an echelon of companies that you cannot find, which at the end of the day, this way it's much easier to raise capital in america. i do it in a harder way, because frankly it's better for investors. >> do you think there's a risk then, martin we could see this on slaught of lot of deals coming to fruition as this frenzy kind of plays itself out. >> it always ends badly. it's as old as time. at the end of the day when you

have an overcrowded field, too many vehicles chasing the same things, and you have company with his no earnings, no profits, and their stocks are flying, you know the end it's the same as 2000 as you could real a book. it's all there so, you know, the difference is i think not that many people will get hurt by this. rather than the actual companies that completed transactions. the nice thing about u.s. spacs is when the tide turns, the deals that haven't been done, everyone will get their money back. >> there's definitely a floor there. as a serial spacer, so to speak you mentioned you're partnering with viking global for this spac what is the benefit with partnering with hedge fund managers to do these things? at this point people know who you are. they've son you do successful spacs in the past. what is the point of fending an

investor -- >> it's a style issue. i like to partner with intelligent people to help navigate to the right place. i've done that my home career. i started partners with nicklaus gruen, and he now, you know, viking you know, for me it's all about finding the right transaction and bridging relationships i find that these associations have hip me be a better investor dealing with investors who understand what the market likes, in terms of public companies i think is important so partnering with them, you know, it's not only productive, but it's also fun. >> yeah, any ideas in terms of where you'll be focused for a company to come public from, martin >> you know, i think i've tended to look at industrial and

consumer, very much focused on the united states today for lots of different reasons, mostly stability over the long term, but we will have a mandate that's wide and open, but i'll stick to the things we have enjoyed successfully before. market leaders in their respective markets, and, you know, well-run businesses that create a lot of cash flow. >> yeah, in the past, martin, i would asking given you're running a consumer-focused business, you always had good insight there. you may still, so i will ask, even though you're not runni jarden any longer what is your consensus given the economic hardships that so many are dealing with you know, it's interesting it's very much selective i'm in the consumer space in

things like -- a private concern -- we have a company called no mad foods, the largest frozen food company in europe. the numbers are record years you know, that's because people are staying at home. i think that the economy in general, particularly in the u.s. is remarkably resilient there's a lot of people who obviously, you know, are experiencing economic hardship at the end of the day markets haven't clasped. people are still feeling secure. obviously purchasing patents have shifted to online you know, you have to look at amazon and their performance to see that but it's remarkably more resilient, and so i think as we come out of this, and at some point we will, and things will normalize one way or the other, i think the recoveries will

actually be pretty good. i think that there is a portion of this population, particularly in the elderly, that i think has truly been traumatized by what has happened with covid-19 i think those behaviors will take a long time to come back, and that would affect things like the restaurant industry >> you seem more positive than not with a number of caveats you want one way or the other we'll get back to normal >> i'm a natural optimists i think optimists are generally happier people he i think very much it depends on the science i think if there is a vaccine and it is rolled out during the course of, you know, pick your time period, but let's say it's by the second half -- by the end of the first half of 2021. i do think you're going to have, you know, a fairly healthy recovery so, you know, that's a lot of

slack in the system that will get picked up by people going back to normal behaviors >> we all look forward to that day, sir martin. thank you for joining us appreciate it. >> nice to see you thank you very much. today at 12:45 eastern do not miss the small business playbook the event will be streaming this year industry leaders like sheryl sandberg will join us with the resources small businesses need to vice president today. you can e-mail cnbc.com to be added to the registration waitlist we're back after a quick break

there's one chart that shows this march to record highs is nde.ainabl fi out more on traden nation more "squawk on the street" coming up. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. - [presenter] stand up if you are..: (audience applauding)

(dramatic music) i will tell you this. southern new hampshire university can change the whole trajectory of your life. welcome back shares of tesla getting a being boost this morning, as elon musk announcic a 5 for 1 stock split effective august 21st. phil lebeau breaks down what that means the market cap above verizon, disney, nvidia

>> it's a 5 for 1 split. shareholders as of record on august 21st, they get in on this so you see stocks right now after the supplied traiting at $300, as opposed to $1500 a shares emanuel rosner from deutsche bank out with a note say the stock price reacted positive yesterday likely because tesla is a -- and the stock supply essential lowers the bar now he's been highlighting in recent months, we think stock -- having recently influenced by a growing retailer invest by the

way, if you look at shares of tesla, it's -- it was 256 yesterday. leslie it's going to be fun to watch how people react if that's important to a retail investor, they like this move. >> as you mentioned, nothing has changed. it's just technical. how much per share you're paying for tesla. >> and the other thing, i've had people say to me, friends of my son in their early 20s, say i'm interested in tesla, i might buy half a share is it a good investment? now they can go out and buy a couple shares or four, five shares, as opposed to maybe only one. >> well, if your goal is to own

multiple shares, this is good news for you thank you, phil. still ahead, the new ceo of opentable, don't go ywreanhe, we're back in just a minute. some companies still have hr stuck between employees and their data. entering data. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today.

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welcome back to "squawk on the street" i'm dominic chu. stocks are higher across the board today with every s&p 500 sectors you can see behind me in positive territory after a few days of relative weakness, it's big technology stocks that are leaders once again, fueling gains in the tech sector and the communications services sector. as we take a look at what's driving that communications services trade so far today, you've got facebook, netflix,

alba fete, activation blizzard and electronic arts and also seeing gains in charter communications and t mobile, media conglomerate news corp keep it on that sector more "squawk on the street" after this quick break >> announcer: "realtime exchange sector sort" sponsored by -- as business moves forward, we're all changing the way things get done. like how we redefine collaboration...

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[ 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. when our next guest predecessor joined us just two months ago he predicted 1 in 4 restaurants would close forever. thanks to the pandemic open table ceo stands by this prediction but she is more

optimistic o of a return to consumer demand post covid joining us in her first interview since taking the position debby. congrats on the new gig. >> thank you thank you for having me. >> for the restauranteurs, when do you think things forever for restaurants look as they did in 2019 >> yeah. we think about that question a lot. obviously that's very much top of mind for our restaurant partners we think for dining to really return back to pre-covid levels all the way back a vaccine will definitely probably be needed. however, we do see dining demand starting to pop up recently we ran a survey at open table 25% of our respondents were saying that they were dining out at least once a week. so that demand is definitely there. now, of course, safety precautions are very top of mind

for both our restaurants and diners so, you know, they want to make sure that the restaurants are keeping their patrons and their employees safe, mask wearing, you know, table spacing, all of that but we don't know when it's going to come back to precovid levels we think likely it will be after a vaccine is out there and available for people to take but we are seeing signs of life. we know that that diner demand is there people are itching to get out and eat. >> in the meantime throughout this pandemic, you've been launching a bunch of new features in response to the changing way that consumers are using restaurants. tell us about takeout and experiences, which are two of those new features >> sure. so, yes. as you said, we've recently launched a myriad of different features to adapt to the quickly-changing environment around us. so we launched takeout what that means is for diners it's a really convenient way to browse a restaurant's menu, order a meal and pay all from

your open table app. and for restaurants it's great because it's an additional revenue stream we also release what had we call safety precautions, like i mention before safety is very top of mind for both restaurants and diners. so, we -- when you come to opentable for each restaurant you're looking at going to, you can see a list of all the specific and health and safety initiatives that restaurants are following to keep their diners and staff safe we recently launched experiences, like you said this can be anything from a happy hour or prefix menu or chef's table we see a lot of demand for this, even now, when people are still not completely comfortable going out to eat but there is this hunger and need for special occasions in these types of experiences >> debby, what's going to happen when it gets colder in the fall? we won't have a vaccine then and people are probably not want to go inside restaurants even if

they are allowed to do so. >> yeah. we think about that one a lot too. it's very much top of mind for restaurants who are right now experiencing a great surge of demand, right? because it's summer and dining out is so popular and prevalent. i imagine that takeout and delivery will continue to gain share especially in the colder months people now are much more willing to order food and get it delivered or go and pick it up so i imagine that's what's going to be one of the main lifelines for restaurants during this colder months. >> debby, jon fortt. a friend of mine has a michelin-star restaurant in manhattan. she had to close it because she couldn't come to terms with her landlord she and her husband have two other restaurants that are doing takeout. the one she had to close is kind of opentable's bread and butter. how many of those kinds of

restaurants that have space that need the efficiency that opentable has traditionally delivered, how many of those do you expect to lose and what's the conditions that are needed to bring them back? >> so as steve my predecessor mentioned a few weeks we expect 1 and 4 restaurants to close and not be able to return because of covid. that's pretty much on track. unfortunately we think now that number might even be conservative like you said, restaurants are going through a grueling time right now. you know, having to pay for their wait staff, rent, as you mentioned, is a huge cost. for restaurants like that to open back up, any type of government aid that can be given to them is amazing and necessary. but also again, people have to feel comfortable being in an enclosed area and feeling safe

to be around other people. a lot of the restaurants you talked about, right, space is a constraint so, people aren't going to feel safe likely until there's a vaccine, until they can -- they know that when they're in close spaces that it's going to be okay >> debby n a recreant filing the parent of opentable booking holding said it wrote down the value of opentable and kayak by about half a billion dollars thanks to a reduction in forecasted cash flow i'm curious especially for a lot of businesses out there that are struggling with the same changes as a result of covid, really quickly, can you explain how difficult it is to be investing in a business during this time >> yes it is very, very challenging we are -- at opentable, we're doing everything we can to support our restaurant partners. as hard as opentable has it right now, our restaurant partners have it harder. we're trying to push the message and walk the walk of we're in

the trenches with you, with our restaurant partners. we recently extended our open door policy which basically waives subscription and reservation fees until the end of 2020. it's a hit that we take on our pnl for sure, but we really believe that it's the right thing to be doing to support our restaurants. >> all right well we appreciate that. thank you debby, for joining us today. >> thank you and with that we will start "squawk alley. julia and mike santoli are joining me for the hour. and this morning, mike, check in on the markets we have modestly higher on the dow about 1% s&p up 1 1/3 nasdaq doing better. i can't help notice tesla up more than 8.5% but semiconductors, call qualm up 4 >> jon, the tech